Catalent announces IPO terms

Company plans to offer 42.5 million shares at between $19 and $22 each

Jeffrey Bouley
SOMERSET, N.J.—July 18 saw Catalent—a global provider of oral, injectable and respiratory drug delivery technologies and development solutions for drugs, biologics and consumer health products—announce the terms of an initial public offering (IPO) that is expected to bring in something a little south of $1 billion.
 
The company, which is controlled by Blackstone Group LP, has announced that its IPO will be priced between $19 and $22 per share, with 42.5 million shares total. Various media reports say that the company aims to raise $871 million, though some reports have noted the high-end potential of $935 million—unlikely though that latter number is to be the final tally. Market-watches are predicting that the IPO, if successful, could end up valuing Catalent at around $2.5 billion.
 
The shares are expected to price during the week of July 28.
 
In its IPO registration with the U.S. Securities and Exchange Commission, the company notes that it plans to trade under the symbol CTLT. The IPO offering is being led by Morgan Stanley and J.P. Morgan.
 
As Catalent noted in September 2013 for its most recent full-year financial recap (for the fiscal year ended June 30, 2013), “our revenues were $1,800 million and adjusted EBITDA [earnings before interest, taxes, depreciation, and amortization] was $413 million. From the fiscal year ended June 30, 2009, to the fiscal year ended June 30, 2013, our revenues and adjusted EBITDA grew at compound annual growth rates, or CAGRs, of 6.5 percent and 10.8 percent, respectively.”
 
Catalent booked $1.8 billion in sales for the 12 months ended March 31, 2014.
 
Formerly the Performance Technologies and Services segment of Cardinal Health, Catalent was formed in 2007 when the Performance Technologies and Services business was acquired by Blackstone for $3.3 billion.
 
In other Catalent news recently, the company noted that it will have a team of experts presenting and speaking on a range of industry topics at this year’s Controlled Release Society Annual Meeting, being held from July 13 to 16 in Chicago.
 
In addition, the company was invited in late June by the U.S. Food and Drug Administration  (FDA) Office of Compliance and Biologics Quality to speak at its Manufacturing Technology Seminar Series. The FDA had specifically requested that Catalent present on its ADVASEPT technology, for the advanced aseptic filling of injectable drugs, and Zydis, Catalent’s Fast Dissolve technology, which is a freeze-dried oral dosage form that disperses instantly in the mouth, requiring no water.
 
Also, on July 1, Catalent, in celebrating its 40th year in the Japanese market, announced that it has appointed Tadahiro Matsumura as country leader for Japan. Catalent noted in the same news release that it plans to open a dedicated laboratory at its Kakegawa, Japan, site to provide proof-of-concept support and feasibility studies for Catalent’s proprietary Zydis orally dispersible tablet (ODT) technology and will also expand manufacturing capacity for its OptiGel Micro softgel technology.

Jeffrey Bouley

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