Catalent: biologics contracting still major growth driver in Q3

By Gareth Macdonald contact

- Last updated on GMT


Related tags: Revenue

Biologics contracting drove growth in fiscal Q3 according to Catalent, which predicted the proportion of revenue it generates from large molecule work will continue to increase.

On Thursday, Catalent reported that revenue for the three months ended March 31 was $523.6m (€477.5m), up 25% on the year earlier quarter. It also said quarterly earnings (EBIDTA) had increased 40% to $93.8m.

The contract manufacturing organisation (CMO) saw revenue growth in all divisions - softgel technologies, clinical supply services and drug delivery solutions – however, it was the latter unit that made the biggest contribution, some $234.6m up 27%.

Catalent said demand for its higher margin offerings, the contribution from recent acquisition Pharmatek​ and “increased volume from our biologics offerings of 6%”​ drove the division’s revenue growth in the quarter.

The CMO rejigged its delivery solutions unit – which includes its biologics manufacturing and cell line development activities businesses - last December​.

Biologics growth

CFO Matthew Walsh highlighted the biologics business growth during Catalent’s conference call, pointing out that when the firm went public in 2014 large molecule-related activities generated 1% of its revenue, whereas now this type of work brings in 4%.

He said Catalent had seen growing demand for its biologics facility in Madison, Wisconsin – which it started to expand in November​ – citing recent deals with Roche​, Moderna Therapeutics​ and Triphase Accelerator​ as examples.

Walsh also said biologics would continue to drive growth going forward, highlighting continued interest in Catalent’s SMARTag​ protein modification and conjugation technology to support his argument.

The comments are in keeping with what CEO John Chiminski said during Catalent's Q2 call in February, when he “The biologics business continues to be really growing in an incredibly fast rate."

Amgen exec joins Catalent

During the Q3 call Catalent announced it had appointed former Amgen executive Madhu Balachandran to its board, highlighting his biologics sector experience.

Madhu is a seasoned executive who brings a wealth of biologics and operations experience which will be extremely valuable, as we continue to execute on our growth strategy​” Chiminski said.

Related news

Show more

Related products

show more

Seasonal Vaccine Manufacturing

Seasonal Vaccine Manufacturing

Baxter BioPharma Solutions | 10-Feb-2021 | Technical / White Paper

The production of seasonal vaccines, such as those for influenza, presents unique challenges to manufacturers due to the necessary time constraints resulting...

Consideration and Options for Prefilled Syringes

Consideration and Options for Prefilled Syringes

Baxter BioPharma Solutions | 10-Feb-2021 | Technical / White Paper

Convenience, product differentiation, and less waste are great reasons for developing a product in a prefilled syringe. Baxter’s whitepaper describes the...

Rapid Biosafety Testing Enables the Future of Manufacturing

Rapid Biosafety Testing Enables the Future of Manufacturing

Viral Safety for mAb: Prevent, Detect, Remove | 23-Nov-2020 | Technical / White Paper

This white paper explores the factors driving the evolution toward faster biosafety testing and describes rapid approaches for adventitious agent testing...

Related suppliers

Follow us


View more