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Catalent (Nasdaq: CTLT) | Company Profile, History, Competitors

 

Catalent (NASDAQ: CLTL) provides formulation, development and manufacturing technologies to biopharma and consumer products companies. The company was founded in 2007 when private equity firm Blackstone acquired the business from Cardinal Health. It is headquartered in Somerset, NJ.

Catalent provides drug delivery solutions such as tablets, softgels, injection, inhalation and opththalmic routes. Catalent manufactures its products for leading drug companies like Pfizer, Allergan and Teva.

Business Overview

Catalent operates in three main segments:
  • Medication Delivery Solutions (43% of 2017 Revenues): Formulates, develops, manufactures a broad range of dose forms including fast dissolving tablets, controlled release products and drug delivery via injection, inhalation and ophthalmic routes.
  • Softgel Technologies (41% of 2017 Revenues): Formulates, develops, manufactures softgels
  • Development and Clinical Services (17% of 2017 Revenues): Provides manufacturing, packaging, storage, distribution and inventory management for drugs and biologics in clinical trials.

Medication Delivery Solutions Segment

Catalent manufactures various formulation delivery technologies. The majority of the business is oral solid doses. Catalent manufactures uncoated and coated tablets, powder/pellet/bead-filled two-piece hard capsules, lozenges, powders and sprays. Injectable doses include filling drugs or biologics into pre-filled syringes and glass-free vials.

Softgel Technologies Segment

Catalent is the market leader in softgels[1]. Softgels includes traditional softgel capsules made from animal-derived gelatin, Vegicaps and OptiShell capsules.

Clinical Supply Segment

Catalent provides manufacturing, packaging, storage, distribution and inventory management for solid drugs and biologics in clinical trials.

Manufacturing & Distribution

As of 2017, Catalent has 35 manufacturing facilities around the world. The company has a strong footprint in North America and Europe.

Sales & Marketing

Catalent operates a hybrid demand generation model, with dedicated account teams offering the full breadth of Catalent’s solutions to select global accounts while technical specialist teams provide in-depth knowledge for each individual offering.

Customers

In Softgel Technologies, key customers are Pfizer, Novartis, Bayer, Johnson and Johnson, Allergan and Teva.

In Medication Delivery Solutions, key customers are Pfizer, GlaxoSmithKline, Teva, Eli Lilly, Johnson & Johnson and Allergan.

In Clinical Supply Services, key customers are  Merck, Quintiles, Eli Lilly, Abbvie, Incyte Corporation and Pfizer.

Competitors

Its main competitors are Patheon (Thermo Fisher), Aenova, Famar and Fareva.

History

Cardinal began acquiring the assets that would become Catalent in 1996 with PCI Services, a pharmaceuticals packaging business. In 1998, the company acquired RP Scherer, a leading softgel manufacturer.

In 1999, the company acquired Automatic Liquid Packaging, which brought flow-fill-seal technology; in 2002 Magellan Labs, which represented the company’s entry into
the analytical services market; and in 2003 Intercare Group, which brought injectable manufacturing assets.

In 2007, the company was acquired by Blackstone. In 2014 , the company went public.

Management

John Chiminski (CEO): John Chiminski serves as CEO since 2009. Prior, he served as CEO of GE Medical Diagnostics.

Wetteny Joseph (CFO): Wetteny Joseph serves as CFO since 2018. Prior, he was President Clinical Supply Services at Catalent. He had also worked as Director at Hughes Supply, a leading wholesale distributor of plumbing. He had also worked as a manager at PriceWaterhouseCoopers.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $1,800 
$1,828 
$1,831 
$1,848 
$2,075 
 Gross Profit $569 
$599 
 $615 
 $588 
 $655 
 Operating Profit $204 
$241 
 $260 
 $218 
 $234 
 Net Income($47)$16 
$212 
 $112 
 $110 
 EPS($0.62)$0.21 
$1.75 
$0.89 
$0.87 

References

Catalent, Inc.
 
  Type     Public
  Ticker     NASDAQ: CTLT
  Industry Healthcare
  Founded 2007
  Headquarters Somerset, NJ
  Revenues
$2.1bn (2017)
  Employees 11,000 (2017)
  Website catalent.com