SOMERSET, N.J. - Catalent, Inc. (NYSE: NYSE:CTLT), a prominent player in the pharmaceutical services industry, has announced the approval by its shareholders of a definitive merger agreement with Novo Holdings A/S. The approval, secured with a 99.2% majority at a Special Meeting held earlier today, will result in Novo Holdings acquiring all outstanding shares of Catalent for $63.50 per share in cash.
Alessandro Maselli, Catalent's President and CEO, expressed gratitude to the shareholders for their support, viewing the vote as a key step toward completing the transaction. He anticipates that the partnership with Novo Holdings will enable Catalent to continue its mission as an independent Contract Development and Manufacturing Organization (CDMO), leveraging Novo Holdings' expertise and resources.
The merger, which is anticipated to close by the end of 2024, is subject to customary closing conditions, including regulatory approvals. It is not contingent on financing arrangements. Catalent plans to file the final voting results with the Securities and Exchange Commission following certification by the company’s inspector of elections.
Catalent, headquartered in Somerset, New Jersey, is known for its comprehensive capabilities in drug development, delivery technologies, and manufacturing. The company supports over 1,500 partner programs and annually launches more than 150 new products.
Catalent operates more than 50 facilities worldwide and employs nearly 18,000 people, including over 3,000 scientists and technicians. In the fiscal year 2023, Catalent reported revenues approaching $4.3 billion.
The transaction's forward-looking statements are subject to risks and uncertainties, including regulatory approvals and conditions, and there can be no assurance that the anticipated benefits of the merger will be realized. The company has outlined potential risks and uncertainties in its most recent SEC filings and the definitive proxy statement filed on April 15, 2024.
This news is based on a press release statement from Catalent, Inc.
InvestingPro Insights
As Catalent, Inc. (NYSE: CTLT) looks ahead to the completion of its merger with Novo Holdings A/S, investors have been closely monitoring the company's performance metrics and market position. According to real-time data from InvestingPro, Catalent currently has a market capitalization of $9.77 billion. Despite not being profitable over the last twelve months, analysts are optimistic about the company's future, expecting net income to grow this year. This aligns with the company's strategic initiatives and the anticipated synergies from the merger.
InvestingPro data also reveals that Catalent's stock has experienced a significant price uptick over the last six months, with a 36.47% increase, indicating strong investor confidence. This positive sentiment is further supported by the fact that the stock is trading at 89.67% of its 52-week high, with a previous close price of $54.82. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a healthy liquidity position.
For those looking to delve deeper into Catalent's financials and market trends, InvestingPro offers additional insights. There are currently 4 InvestingPro Tips available for Catalent, including observations on the stock's low price volatility and the Relative Strength Index (RSI) suggesting it is in oversold territory. These insights can be particularly valuable for investors considering the implications of the merger on Catalent's stock performance.
To access more exclusive analysis and tips that could guide your investment decisions regarding Catalent, consider subscribing to InvestingPro. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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