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Catalent misses Q1 revenue estimates ahead of $16.5 bln deal close with Novo Holdings
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Catalent misses Q1 revenue estimates ahead of $16.5 bln deal close with Novo Holdings
Nov 6, 2024 12:29 AM

Nov 5 (Reuters) - Contract drug manufacturer Catalent ( CTLT )

, which is in the process of being acquired by Novo

Holdings, posted a surprise first-quarter loss and revenue below

Wall Street estimates on Tuesday.

WHY IT'S IMPORTANT

The company provides filling and packaging services for

syringes and injection pens in sterile conditions, including for

Danish drugmaker Novo Nordisk's popular weight-loss

treatment Wegovy.

Novo Holdings, the investment firm that has a controlling

interest in Novo Nordisk, agreed to buy Catalent ( CTLT ) in February to

boost the supply of Wegovy.

CONTEXT

Catalent ( CTLT ) said the deal is expected to close towards the end

of this year, after which the parent firm will sell three of the

contract manufacturer's key fill-finish sites to Novo Nordisk

for $11 billion.

On Monday, a regulatory filing showed EU antitrust

regulators will decide by Dec. 6 whether to clear the deal.

In May, the U.S. Federal Trade Commission had sought more

information on the deal.

The deal has been criticized by some U.S. consumer and labor

groups that have urged the FTC to block it, saying it threatens

competition in the booming weight-loss drugs industry.

Drugmakers Roche and Eli Lilly ( LLY ) have also

expressed concerns.

BY THE NUMBERS

Catalent's ( CTLT ) revenue for fiscal first quarter ended Sept. 30

was $1.02 billion, marginally below analysts' estimates of $1.06

billion, according data compiled by LSEG.

Revenue from its biologics segment was $461 million, missing

expectations of $470.57 million.

Its pharmaceuticals and consumer health segment posted sales

of $563 million, below estimates of $566.60 million.

Catalent ( CTLT ) posted a quarterly adjusted loss of 13 cents per

share. Analysts were expecting a profit of 5 cents.

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