Catalent’s Joining the Novo Family Concurrent with Dampened COVID Sales Slide
As Catalent, a global leader in pharmaceutical contract manufacturing, prepares to join Novo Holdings' family of companies, the CDMO (Contract Development and Manufacturing Organization) faces a decline in revenue, largely due to diminishing COVID-19 business. In the second quarter of Catalent's 2024 fiscal year, the company reported revenues of $1.03 billion, down 11% in constant currencies from the same period in the preceding year, with a net loss amounting to $204 million. However, despite this turbulence, the planned acquisition by Novo is seen as a positive catalyst for Catalent's future, which has envisioned itself as a top-positioned CDMO, especially in the rapidly expanding GLP-1 market.
Key points:
- Catalent experiences a sales slump due to diminishing demand for COVID-19 related programs.
- Second quarter 2024 fiscal year: Revenues down 11% (to $1.03 billion) compared to the previous year's same period.
- Novo Holdings acquiring Catalent for $16.5 billion, bolstering investor confidence.
- Catalent aims to strengthen its position in the GLP-1 market, expected to grow past $500 million revenue from less than $100 million in 2024.
- The deal includes selling three fill-finish sites to Novo Nordisk for $11 billion.
- Some concerns from rival Eli Lilly around the buyout's potential impact on contractual obligations.
- Catalent considered unique and at the forefront of life sciences innovation within its cross-sections of expertise, including biologics, pharma, and consumer health.