Catalent Hits 3-year Low After Delaying Results
Catalent (CTLT:US) stock trades over 25% lower on Monday after the company said it won’t report results on May 09 as initially planned. Instead, the company will report on May 15.
“We are dissatisfied with our recent results and are taking the necessary steps to address the issues that negatively impacted our performance, which fell well short of our prior projections,” CEO Alessandro Maselli said in a press release.
Moreover, the company said it expects to “significantly” reduce both fiscal 2023 net revenue and adjusted Ebitda guidance by over $400 million each. This is due to operational, productivity and forecasting issues.
Along these lines, Catalent reported that it found “significant issues with its forecasts over the past year, which are currently being addressed.” Maselli added that the company is confident that the identified issues are “addressable.”
“Our reduced outlook for fiscal 2023 was not due to any GMP compliance issue or the loss of any customer or canceled order.”
This is the second time that Catalent issued a warning in just a few weeks' time. In April, the stock suffered a selloff after Catalent said it is experiencing productivity and operational issues at several of its facilities.
Congress members Daniel Goldman, Ro Khanna, Susie Lee and Kurt Schrader were all trading CTLT shares in recent months. Most recently, Rep. Goldman said he acquired some Catalent shares while they were trading just below the $70 mark.
On Monday, Catalent stock was exchanging hands nearly 50% lower since Congressman’s trade.
