Catalent misses Q1 revenue estimates ahead of $16.5 bln deal close with Novo Holdings

Reuters11-05

Nov 5 (Reuters) - Contract drug manufacturer Catalent

, 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 in February to boost the supply of Wegovy.

CONTEXT

Catalent 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 have also expressed concerns.

BY THE NUMBERS

Catalent's 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 posted a quarterly adjusted loss of 13 cents per share. Analysts were expecting a profit of 5 cents.

(Reporting by Bhanvi Satija in Bengaluru; Editing by Krishna Chandra Eluri)

((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;))

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