(Reuters) – Contract drug manufacturer Catalent beat analysts’ estimates for fourth-quarter revenue on Thursday, helped by its biologics segment that develops and manufactures cell and gene therapies.
WHY IT’S IMPORTANT
The company is the main supplier of fill-finish work – involving the filling and packaging of syringes and injection pens in sterile conditions – including for Danish pharma major Novo Nordisk’s Wegovy.
U.S. rival Lilly, which makes the weight-loss drug Zepbound, also relies on one of Catalent sites for its GLP-1 and other diabetes compounds production.
CONTEXT
Novo Nordisk’s parent Novo Holdings signed a $16.5 billion deal to buy Catalent in February to boost Wegovy supply.
The deal is expected to close toward the end of this year, after which the parent firm will sell three of Catalent’s key fill-finish sites to Novo Nordisk for $11 billion.
The sites are in Anagni, Italy; Brussels, Belgium, and Bloomington, Indiana.
The U.S. Federal Trade Commission in May sought more information on the deal, after Novo’s parent had refiled an application seeking the antitrust agency’s nod.
Earlier this month, Eli Lilly CEO David Ricks said that concerns regarding the deal remain, noting the “oddity of your main competitor being also your contract manufacturer.”
BY THE NUMBERS
Revenue for the fourth quarter ended June 30 was $1.3 billion, compared to analysts’ average estimate of $1.22 billion, according to LSEG data.
Catalent posted an adjusted profit of 65 cents per share, topping estimates of 47 cents.
Its biologics segment recorded revenue of $605 million, compared to the average estimate of $502.97 million.
Its pharmaceuticals and consumer health segment posted sales of $697 million, compared to estimates of $704.87 million.
(Reporting by Sriparna Roy and Mariam Sunny in Bengaluru; Editing by Sriraj Kalluvila)
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