Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nyse  >  Catalent Inc    CTLT


News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Catalent : seeks slice of gene therapy market with Paragon buy

share with twitter share with LinkedIn share with facebook
share via e-mail
04/15/2019 | 03:33pm EDT

(Reuters) - Contract drugmaker Catalent Inc said on Monday it would buy privately held Paragon Bioservices Inc for $1.2 billion (916.4 million pounds) in cash, bolstering its capabilities to make gene therapy drugs for its biotech clients.

Paragon, backed by private-equity firms Camden Partners and NewSpring Capital, focuses on developing and making complex biopharmaceuticals for its clients and is expected to bring in more than $200 million in revenue this year, Catalent said.

"Paragon's unparalleled expertise in the rapidly growing market of gene therapy manufacturing will be a transformative addition to our business that we believe will accelerate our long-term growth," Catalent Chief Executive Officer John Chiminski said in a statement.

Most emerging drug companies lack the resources to manufacture drugs and rely on contract organizations such as Catalent and Paragon to make the drugs using their technology.

"Over the next 3 to 5 years, demand is going to far outstrip capacity. Customers are really looking to lock up as much manufacturing capacity as they can," Chiminski said on a conference call with analysts.

The deal comes less than a month after Thermo Fisher Scientific Inc signed a $1.7 billion deal to buy gene therapy contract manufacturer Brammer Bio.

Evercore ISI analyst Ross Muken said the M&A activity is likely to continue and expects contract manufacturers to expand their gene therapy capabilities due to the potential of these treatments to drive the next major leg of industry growth.

Catalent said it expects the transaction to add to its adjusted earnings in the second full fiscal year after closing.

The company intends to fund the deal with proceeds from a $650 million incremental term loan and issuance of $650 million of a new series of convertible preferred stock.

Catalent has inked a number of deals over the years, including last year's purchase of drug developer Juniper Pharmaceuticals Inc and a $950 million buyout of Cook Pharmica LLC in 2017.

Separately, Paragon said it will look to expand its partnership with gene therapy maker Sarepta Therapeutics Inc by establishing additional manufacturing facilities.

Catalent shares were up 13.4 percent at $44.55 in afternoon trading.

Centerview Partners LLC is Catalent's financial adviser, while Fried, Frank, Harris, Shriver & Jacobson LLP acted as its legal counsel.

William Blair & Company is financial adviser to Paragon, with Kirkland & Ellis LLP and Gordon Feinblatt LLC acted as its legal counsel.

(Reporting by Saumya Sibi Joseph in Bengaluru; Editing by Anil D'Silva and James Emmanuel)

By Saumya Joseph

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on CATALENT INC
07/18CATALENT : Appoints Ricardo Pravda to Lead Human Resources Function
07/17CATALENT, INC. : Announces Fourth Quarter Fiscal Year 2019 Earnings Conference W..
07/16CATALENT : Biologics Announces Agreement to Provide Additional Production of App..
07/16CATALENT : Announces Agreement to Provide Production for Spinal Muscular Atrophy
07/10CATALENT : to Present at the Controlled Release Society Annual Meeting
07/09CATALENT : Extends Global Commercial Spray Drying Capabilities in Europe
07/02CATALENT : The Use of Continuous Chromatography in Effective Process Design to b..
07/02CATALENT : Presents at PREP Symposium
06/28CATALENT : Ways of Maximizing Value Through Collaborations to be Discussed by Ca..
06/27CATALENT : Report of unscheduled material events or corporate changes.
More news
Financials (USD)
Sales 2019 2 511 M
EBIT 2019 309 M
Net income 2019 130 M
Debt 2019 2 077 M
Yield 2019 -
P/E ratio 2019 64,6x
P/E ratio 2020 49,5x
EV / Sales2019 4,01x
EV / Sales2020 3,48x
Capitalization 8 006 M
Duration : Period :
Catalent Inc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends CATALENT INC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 10
Average target price 53,44  $
Last Close Price 54,94  $
Spread / Highest target 16,5%
Spread / Average Target -2,72%
Spread / Lowest Target -12,6%
EPS Revisions
John R. Chiminski Chairman, President & Chief Executive Officer
Alessandro Maselli Senior Vice President-Global Operations
Wetteny Joseph CFO, Principal Accounting Officer & Senior VP
Jack L. Stahl Lead Independent Director
Rolf Allan Classon Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
CATALENT INC76.20%8 006
JOHNSON & JOHNSON0.98%341 546
PFIZER-2.02%237 728
ROCHE HOLDING LTD.8.73%230 511
ROCHE HOLDING10.69%230 511
NOVARTIS24.78%216 127