SOMERSET, N.J. - Catalent, Inc. (NYSE: NYSE:CTLT), a global provider of advanced delivery technologies and development solutions for drugs, biologics, and consumer health products, has reached a definitive agreement to divest its Somerset, New Jersey oral solids development and small-scale manufacturing facility. The buyer is Ardena, a Contract Development and Manufacturing Organization (CDMO) with a presence in multiple European countries.
The transaction, whose financial terms remain undisclosed, is slated for completion in early 2025. Catalent's corporate headquarters, currently situated at the Somerset facility, will continue to operate from this location during a transitional phase before relocating. The future site of the headquarters is yet to be announced.
Catalent has been expanding its oral solid dose capabilities elsewhere, with significant investments in the United States and Europe. Notably, in October 2022, Catalent bolstered its position with the acquisition of a 333,000-square-foot facility in Greenville, North Carolina, for $475 million. This facility is equipped with advanced capabilities for handling potent active pharmaceutical ingredients (APIs) and offers comprehensive services for oral solid dosage forms.
With a network of over 50 global sites, Catalent supports the development and supply of pharmaceutical products, serving over 1,500 partner programs and launching more than 150 new products annually. The company reported revenue of approximately $4.4 billion in the fiscal year 2024 and employs around 17,000 people, including over 3,000 scientists and technicians. This news comes as part of Catalent’s continued strategic focus on enhancing its global manufacturing footprint to meet evolving industry demands.
The information in this article is based on a press release statement from Catalent, Inc.
In other recent news, Catalent reported a strong performance in the fourth quarter with a 23% year-over-year increase in revenue, reaching $1.30 billion. The company's Biologics segment demonstrated robust growth, with revenue rising 51% year-over-year to $605 million. However, the company posted a net loss of $1.04 billion for the fiscal year 2024, primarily due to goodwill impairment charges.
In analyst news, Baird downgraded Catalent's stock from Outperform to Neutral, citing operational difficulties and a decrease in revenue and profit in the fiscal year 2023. Nevertheless, the firm anticipates the buyout deal with Novo Holdings to finalize by the end of 2024.
Novo Holdings' acquisition of Catalent for $16.5 billion has raised concerns from U.S. Senator Elizabeth Warren and competitor Eli Lilly (NYSE:LLY). Warren expressed concerns over potential antitrust issues, while Eli Lilly voiced apprehensions about a potential conflict of interest. Novo Holdings' acquisition aims to enhance the supply chain for Novo Nordisk (NYSE:NVO)'s weight loss drug, Wegovy. These are the recent developments within the company.
InvestingPro Insights
As Catalent (NYSE: CTLT) moves forward with its strategic divestiture of the Somerset facility, investors may find additional context from InvestingPro's real-time data and tips particularly insightful.
According to InvestingPro data, Catalent's market capitalization stands at $10.97 billion, reflecting its significant presence in the pharmaceutical services industry. The company's revenue for the last twelve months as of Q4 2024 was $4.381 billion, aligning closely with the fiscal year 2024 revenue mentioned in the article. This consistency in reporting underscores the reliability of the company's financial disclosures.
An InvestingPro Tip indicates that Catalent's net income is expected to grow this year, which could be a positive signal for investors considering the company's recent strategic moves, including the Somerset facility divestiture and the earlier acquisition in Greenville, North Carolina. This expectation of growth suggests that the company's strategic decisions may be paying off.
Another relevant InvestingPro Tip reveals that Catalent's liquid assets exceed its short-term obligations. This strong liquidity position could provide the company with the financial flexibility needed to navigate the transition period following the Somerset facility sale and support its ongoing expansion efforts in oral solid dose capabilities.
It's worth noting that InvestingPro offers several additional tips for Catalent, providing a more comprehensive analysis for interested investors. To access these insights and more, readers can explore the full range of tips available on InvestingPro.
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