Catalent Earnings: Strong Non-Covid-19 Sales; Novo Holdings Acquisition to Expand Wegovy Capacity

Catalent's third-quarter revenue for fiscal 2024 of $1.07 billion represented a 4% increase compared with the prior-year period. Excluding covid-19 related revenue, Catalent experienced 11% growth, thanks to strong demand across its biologics segment and pharmaceutical and consumer health segment. Further, non-covid-19 customer wins in the first three quarters of fiscal year 2024 increased double digits over the prior year. These wins underscore our positive outlook for Catalent’s outsourcing services. We continue to think Novo Holdings’ announced acquisition of Catalent for $16.5 billion, or $63.50 per share in cash, represents a fair price for Catalent, as it is very close to our intrinsic valuation of $65 per share. The acquisition remains on track to close around the end of 2024, pending regulatory approvals.