Fri, Sep 6, 9:25 PM (105 days ago)
Catalent, Inc. reported a challenging fiscal year ending June 30, 2024, with net revenue of $4,381 million, a modest increase of 2% from the previous year, primarily driven by growth in gene therapy offerings, offset by a significant decline in COVID-19 product demand. Operating loss was $749 million, impacted heavily by $687 million in goodwill impairment charges. The gross margin decreased by 9% to $953 million, attributed to unfavorable product mix and increased operational costs. Total debt as of June 30, 2024, stood at $4.91 billion, with interest expense rising to $254 million, a 36% increase due to higher rates on variable-rate debt. The company is in the process of a merger with Novo Holdings, expected to close by year-end 2024, which presents potential risks including regulatory approvals and market reaction. Catalent's liquidity remains stable with $1.10 billion available under its revolving credit facility. The company faces ongoing risks from regulatory scrutiny, market competition, and operational challenges, particularly in its Biologics segment. Future strategies include enhancing operational efficiency and expanding into new therapeutic modalities to drive growth.