Catalent, Inc. (CTLT): Investor Discussion

Catalent Inc.

Healthcare


Presented:02/08/2023
Price:$71.31
Cap:$12.83B
Current Price:$60.66
Cap:$11.01B

Presented

Date02/08/2023
Price$71.31
Market Cap$12.83B
Ent Value$12.54B
P/E Ratio31.56x
Book Value$27.29
Div Yield0%
Shares O/S179.96M
Ave Daily Vol3,191,689
Short IntN/A

Current

Price$60.66
Market Cap$11.01B
Catalent, Inc. is a holding company, which engages in the provision of delivery technologies, development, and manufacturing solutions for drugs, biologics, cell and gene therapies, and consumer health products. It operates through the following segments: Softgel and Oral Technologies, Biologics, Oral and Specialty Delivery, and Clinical Supply Services. The Softgel and Oral Technologies segment offers formulation, development, and manufacturing services for soft capsules or softgels, as well as large-scale production of oral solid dose forms for pharmaceutical and consumer health markets and supporting ancillary services. The Biologics segment develops and produces biologic cell-line, cell therapy, and viral vector gene therapy, formulation for parenteral dose forms, which include prefilled syringes, vials, and cartridges, and analytical development and testing services for large molecules. The Oral and Specialty Delivery segment is composed of advanced formulation of a range of technologies along with integrated downstream clinical development and commercial supply solutions. The Clinical Supply Services segment is involved in packaging, storage, distribution, and inventory management of drugs and biologics in clinical trials. The company was founded in 1933 and is headquartered in Somerset, NJ.

On February 8, 2023, DeMatteo Research hosted a discussion on Catalent Inc (CTLT) with four investors. Topics discussed include the overall business quality, the margin & FCF profile, recent manufacturing quality issues, CTLT’s COVID-19 business going forward, recent acquisition rumors, valuation, and attractive entry points.

Publicly traded companies mentioned herein: Catalent Inc (CTLT), Danaher Corp (DHR), Merck & Co Inc (MRK), Moderna Inc (MRNA), Pfizer Inc (PFE), Sarepta Therapeutics Inc (SRPT), Thermo Fisher Scientific Inc (TMO)

Business Quality & Recent Issues

The group largely views CTLT as an attractive asset and solid business with some scarcity value. However, the participants also shared sources of skepticism around performance and positioning. 

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