Catalent Inc, a contract manufacturer of drugs, vaccines and gene therapies, has cut its full-year net revenue and profit forecast due to operational challenges and higher-than-expected costs. The company manufactures drugs for major pharmaceutical companies, including Moderna, Novo Nordisk and Sarepta Therapeutics.
Catalent has been facing challenges at three of its major production sites, which may affect its revenue in the third and fourth quarters due to a slower-than-expected ramp up in production capacity. The company has also had to make some adjustments to its financial statements related to its Bloomington operations, resulting in a delisting notice from the New York Stock Exchange.
Catalent now expects full-year revenue in the range of $4.25 billion to $4.35 billion, compared with the prior forecast of $4.63 billion to $4.88 billion. The company also sees annual adjusted net income in the range of $187 million to $228 million, compared with the previous forecast of $567 million to $648 million.
Shares of the contract manufacturer were up 14% at $36.75 in early trade. Despite the challenges, Catalent said it continues to win significant new business and its customer supply situation remains healthy.