What happened
Healthcare stocks were quite a mixed bag over the past few trading sessions, but one standout rising above the pack was contract drug manufacturer Catalent (CTLT -2.14%). The company’s shares got a nice lift after it reported quarterly results. The stock’s price rose by nearly 26% over the week, according to data compiled by S&P Global Market Intelligence.
So what
For its second quarter of fiscal 2023, Catalent’s revenue was $1.15 billion, representing a 6% drop from the same period of the previous fiscal year. The company’s non-GAAP (adjusted) net income also fell, sliding to $122 million ($0.67 per share) from the year-ago profit of $163 million.
Analysts tracking the company were broadly in the neighborhood with their estimates for the quarter. On average, they were projecting $1.12 billion in revenue, and an adjusted net income of $0.69 per share.
While those results didn’t wow many investors, Catalent looks set to have a rosier future. It announced that it is expanding its manufacturing partnership with leading coronavirus vaccine developer Moderna. Under the terms of the two companies’ new deal, Catalent will be Moderna’s manufacturer of choice and produce its wares in facilities located in both the U.S. and Europe.
Now what
Catalent did not provide the financial particulars of the latest Moderna deal. It did, however, reiterate its guidance for the entirety of 2023. For the year, the company believes it will book net revenue of $4.625 billion to $4.875 billion, and an adjusted net income of $567 million to $648 million.
