After multiple delays, the contract manufacturer presents its earnings report for the third quarter of fiscal 2023, bumping its stock by more than 10%.
Pictured: Group of business people/Courtesy of iStock, alphaspirit
After continued delays in May 2023, Catalent announced its long-awaited financial report for the third quarter of fiscal 2023 on Monday. The company’s revenue of $1.04 billion was 19% below the same quarter’s revenue last year yet is above that estimated by Wall Street. Catalent shares rose by more than 10% on Monday following the news.
The company, headquartered in Somerset, New Jersey, had an adjusted net loss of $17 million, dropping 9 cents per share, which contrasts with an income of $188 million, or $1.04 per share, in the same quarter a year ago, according to their data.
The company has stated that one of the reasons for the earlier delays in filing this report was a series of operational challenges due to unexpected cost increases at some of its manufacturing sites—including one in Indiana and one in Brussels—following regulatory inspections. The company’s shares have taken a hit since these problems were announced in April this year, losing nearly 40% since then.
The losses reported today reflect the effect of those costs for Catalent, which specializes in providing technologies for the delivery, development and manufacturing of drugs, gene therapies and other healthcare products.
However, the company’s President and CEO, Alessandro Maselli, said in the earnings release that the company is currently progressing in addressing these challenges “while also completing our strategic investments in high-demand, high-growth areas and executing a company-wide cost-reduction plan.”
Catalent projects net revenue of $4.23 billion to $4.33 billion, its previous guidance from $4.25 billion to $4.35 billion. In its report, the company also revised its full-year adjusted net income forecast, expecting it to be between $169 million to $210 million, down from its original forecast of $187 million to $228 million.
“The fundamentals of our business remain strong, with durable customer demand for our global services and our talented colleagues continuing to deliver on some of the most complex and significant programs” in the contract development and manufacturing organization industry, Maselli said in the release.
For instance, last week, the company announced that it had expanded one of its products—OneBio Suite, an integrated service for early-phase protein therapy development—across other biologic modalities, including antibody and recombinant proteins and cell and gene therapies.
Regarding the financial results published today, Jacob Johnson, an analyst at Stephens Inc., told Reuters that they have “cleared an admittedly low bar.” “After a number of shoes dropping and a lot of noise recently, today was a good first or second step.”
Alejandra Manjarrez is a freelance science writer based in Mexico City. Reach her on her website.
