Takeaways
- Syringe maker Catalent suggested that growing demand for injectable weight-loss drugs could lead to big revenue gains, and shares jumped.
- The company said sales of its prefilled syringes could more than quintuple due to their popularity. of these drugs.
- Catalent also reported preliminary quarterly results and revenues exceeded forecasts.
Syringe maker Catalent (CTLT) said growing demand for injectable weight-loss drugs could lead to big revenue gains, and shares jumped more than 11%.
The company indicated that it expects the majority of its current and future prefilled syringe production capacity through fiscal 2026 to be reserved soon.
Catalent syringes are used to administer Wegovy by Novo Nordisk (NVO), a diabetes treatment that has been shown to help patients lose weight. Wegovy belongs to the class of drugs known as GLP-1, which also includes Ozempic from Novo Nordisk and Mounjaro and Zepbound from Eli Lilly (LLY).
CEO Alessandro Maselli said “exposure to the GLP-1 opportunity is growing rapidly. He added that the company plans to accelerate the expansion of its fill and finish operations in Bloomington, Indiana, and Anagni, Italy.
Maselli said that ;once these expanded facilities are operational, revenue from its GLP-1 drug-delivering products could exceed $500 million, up from less than $100 million forecast for fiscal 2024.
Catalent also announced a figure of Preliminary business of $982 million for the first quarter of fiscal 2024, down 4% from a year ago, but more. than analyst estimates. The company announced Monday that it was delaying the release of its quarterly report due to a $700 million goodwill impairment charge.
Even with Wednesday's gains , Catalent shares remained lower for 2023.
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Source: investopedia.com
