Syringe Maker Catalent Anticipates Boost From Demand for Injectable Weight-Loss Drugs

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published November 15, 2023
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Key Takeaways

  • Syringe maker Catalent suggested soaring demand for injectable weight-loss drugs could lead to sizable revenue gains, and shares surged.
  • The company said sales of its pre-filled syringes could increase more than five-fold because of the popularity of those drugs.
  • Catalent also released preliminary quarterly results, and revenue exceeded forecasts.

Syringe maker Catalent (CTLT) said soaring demand for injectable weight-loss drugs could lead to big revenue gains, and shares surged over 11%.

The company indicated that it expected a majority of its current and upcoming production capacity for pre-filled syringes until fiscal year 2026 to soon be booked out.

Catalent syringes are used to deliver Novo Nordisk’s (NVO) Wegovy, a diabetes treatment that has been shown to help patients lose weight. Wegovy is in the class of drugs known as GLP-1, which also includes Novo Nordisk’s Ozempic and Eli Lilly’s (LLY) Mounjaro and Zepbound.

CEO Alessandro Maselli said Catalent’s “exposure to the GLP-1 opportunity is rapidly growing.” He added that the company is planning to speed up expansion of its fill-and-finish operations in Bloomington, Ind. and Anagni in Italy.

Maselli indicated that once those expanded facilities are operational, revenue for its products delivering GLP-1 drugs could exceed $500 million, versus less than $100 million anticipated in fiscal 2024.

Catalent also reported preliminary first quarter fiscal 2024 revenue of $982 million, down 4% from a year ago but more than analysts’ estimates. The company announced on Monday it was delaying release of its quarterly statement because of a $700 million goodwill impairment charge.

Even with Wednesday’s gains, Catalent shares remained lower for 2023.

CTLT

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  1. Catalent. "Preliminary Q1’24 Earnings Call Presentation ."

  2. Catalent. "FORM 12b-25."

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