Sector: Healthcare|Industry: Drug Manufacturers - Specialty & Generic|Market Cap: $11.52B|Employees: 18K
Catalent, Inc., together with its subsidiaries, develops and manufactures solutions for drugs, protein-based biologics, cell and gene therapies, and consumer health products worldwide. It operates in two segments, Biologics, and Pharma and Consumer Health. The Biologics segment provides formulation, development, and manufacturing for biologic proteins, cell gene, and other nucleic acid therapies; pDNA, iPSCs, oncolytic viruses, and vaccines; formulation, development, and manufacturing for parenteral dose forms, including vials, prefilled syringes, and cartridges; and analytical development and testing services for large molecules. The Pharma and Consumer Health segment offers formulation, development, and manufacturing services for soft capsules for use in a range of customer products, such as prescription drugs, over-the-counter medications, dietary supplements, unit-dose cosmetics, and animal health medicinal preparations; and oral, nasal, inhaled, and topical dose forms. This segment also provides clinical supply services through manufacturing, packaging, storage, distribution, and inventory management for small-molecule drugs, protein-based biologics, and cell and gene therapies in clinical trials; and pre-clinical screening, formulation, analytical development, and current good manufacturing practices manufacturing at clinical and commercial scale for softgel capsule, Zydis fast-dissolve tablets, oral solid-dose formats, dry powder inhalers, and nasal delivery devices. The company also offers FlexDirect direct-to-patient and FastChain demand-led clinical supply solutions; fill and finish operations for injectable products; and integrated development and product supply chain solutions. It serves biotechnology, pharmaceutical, and consumer health companies; and companies in other healthcare market segments, such as animal health and medical devices, as well as in cosmetics industries. The company was founded in 1933 and is headquartered in Somerset, New Jersey.
Net revenue decreased by $58 million, or 6%, excluding the impact of foreign exchange, compared to the three months ended September 30, 2022. The decrease was primarily driven by a decline in demand for COVID-19 related programs, and a decline in demand for our consumer health products, primarily our wellness products, partially offset by growth from the manufacture of prescription products and our gene therapy offerings.
Gross margin decreased $94 million, or 37%, compared to the three months ended September 30, 2022, excluding the impact of foreign exchange. On a constant-currency basis, gross margin, as a percentage of revenue, decreased 820 basis points to 17.0% in the three months ended September 30, 2023, compared to 25.2% in the prior-year period, primarily due to an unfavorable shift in product mix, reduced productivity, and higher costs due to increased spending on operational and engineering enhancements in our Biologics segment.
Operating (loss) earnings were $(726) million compared to $60 million. Goodwill impairment charges during the three months ended September 30, 2023 were associated with our Consumer Health and Biomodalities reporting units, which are part of our Pharma and Consumer Health and Biologics segments, respectively. For further details, see Note 4, Goodwill to our Consolidated Financial Statements.