By Senad Karaahmetoivc
Catalent (NYSE:CTLT) announced a business update today that saw its shares plunge almost 20% in pre-open Friday.
The company reported productivity issues and higher-than-expected costs experienced at three of its facilities, which will impact its Q3 results and full-year outlook.
Issues at BWI, Bloomington, & Brussels were spotted, including ramp-ups, operational challenges, productivity challenges, and higher-than-expected costs. These sites include two of Catalent’s largest manufacturing facilities.
The BWI plant issues will “significantly” reduce the expected revenue from this facility.
“None of these issues is expected to adversely impact the quality or commercial launch quantities of any product made at BWI in light of, among other things, the level of “bright stock” on hand,” the company said in a business update.
“However, revenue from the unproduced batches cannot be made up for in this fiscal year due to manufacturing capacity constraints. The Company expects to recover related revenue in the second half of calendar year 2023 (the first half of the Company’s 2024 fiscal year).”
Moreover, the company announced that Ricky Hopson will assume the role of interim chief financial officer. Hopson will replace Thomas Castellano, the company’s senior vice president and chief financial officer, who left the company on April 13.
Catalent shares are up 40.6% year-to-date.