Catalent Reports Mixed Q2 Earnings, Expands Manufacturing Contract With Moderna

Catalent Inc CTLT reported Q2 FY23 sales of $1.15 billion, which decreased 6% Y/Y as reported, or 2% in constant currency, slightly beating the consensus of $1.12 billion.
Adjusted EPS of $0.67, compared to $0.90 last year, missed the consensus of $0.69.
Adjusted EBITDA was $283 million, or a margin of 25%, compared to $310 million a year ago.
Biologics segment sales decreased by 7% to $580 million on a constant currency basis.
Pharma and Consumer Health segment sales increased by 3% to $570 million on a constant currency basis.
Catalent has extended and expanded its manufacturing partnership with Moderna Inc MRNA to support the manufacture of multiple Moderna products in multiple formats.
Catalent will continue to provide drug product fill/finish services and production capacity for Moderna’s COVID-19 programs.
The companies also plan to extend their ongoing partnership to non-COVID-19 programs such as flu and respiratory syncytial virus vaccines, starting with its manufacturing site in Bloomington, Indiana, and to be expanded to its facility in Anagni, Italy.
Guidance: For FY23, Catalent reiterates sales guidance of $4.625-$4.875 billion compared to the consensus of $5.08 billion.
It expects an adjusted EBITDA of $1.22-$1.30 billion and an adjusted net income of $567-$648 million.
Most recently, Danaher Corporation DHR reportedly expressed interest in acquiring Catalent.
Price Action: CTLT shares are up 3.39% at $69.27 on the last check Tuesday.

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