CTLT
Catalent Inc.
Healthcare
08/18/2022
Presented
| Date | 08/15/2022 |
| Price | $109.97 |
| Market Cap | $19.71B |
| Ent Value | $23.39B |
| P/E Ratio | 39.79x |
| Book Value | $25.87 |
| Div Yield | 0% |
| Shares O/S | 179.21M |
| Ave Daily Vol | 1,039,142 |
| Short Int | 2.22% |
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 consists of advanced formulation of a range of technologies along with integrated downstream clinical development and commercial supply solutions. The Clinical Supply Services segment involves packaging, storage, distribution, and inventory management for drugs and biologics in clinical trials. The company was founded in 1933 and is headquartered in Somerset, NJ. |
Publicly traded companies mentioned herein: Catalent Inc (CTLT), Moderna Inc (MRNA), Thermo Fisher Scientific Inc (TMO), Wuxi Biologics Cayman Inc (2269 HK)
Highlights
The presenter is long shares of Catalent Inc (CTLT), one of the largest CDMOs specializing in biologics and softgel & oral technologies. Its largest competitors are Thermo Fisher (TMO) and WuXi Biologics in China. The industry is very fragmented and there are significant differences in business quality among the providers of biologics. Historically, CDMOs were boring businesses as pharmaceutical companies only used them for the tail end of projects’ life cycles. Lately, the space has become much more interesting as pharmaceutical companies outsource more to CDMOs. The presenter gives a price target of $170, creating significant upside over a 3 - 5 year window as he believes investors are underappreciating the growth potential and profitability of the business.
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