Catalent (NYSE: CTLT) reported Q2 EPS of $0.45, $0.01 better than the analyst estimate of $0.44. Revenue for the quarter came in at $721.4 million versus the consensus estimate of $698.52 million.

• Q2'20 revenue of $721.4 million increased 16% as-reported, or 17% in constant currency, from Q2'19.
• Accelerated growth in the Biologics segment. Solid organic growth in the Softgel and Oral Technologies and Clinical Supply Services segments more than offset decline in the Oral and Specialty Delivery segment.
• Announcing further expansion of Biologics footprint with agreement to acquire MaSTherCell, a leading cell therapy development and manufacturing partner with facilities in Brussels, Belgium and Houston, Texas.
• Raising FY'20 financial guidance range, primarily due to continued growth of recently acquired gene therapy business and acquisition of Bristol-Myers Squibb’s biologics, sterile, and oral solid dose product manufacturing and packaging facility in Anagni, Italy.
• Revised guidance reflects revenue growth of 14-17% and adjusted EBITDA growth of 19-23%, compared to previous guidance of revenue growth of 10-14% and adjusted EBITDA growth of 17-22%.

“Our second quarter results were driven by continued growth from the gene therapy, viral vector businesses we acquired in 2019, as well as solid organic growth in three of our four reporting segments,” said John Chiminski, Chair and Chief Executive Officer of Catalent, Inc. “We are excited by our pending acquisition of MaSTherCell, a leader in technology-based cell and gene therapy development and manufacturing, which will complement our growing gene therapy capabilities and help us further deliver on our strategy to mirror our portfolio with the growing number of biologics in the global R&D pipeline. As a result of the faster growth we are seeing in our Biologics segment, our planned capital investments to support its robust demand, and strategic acquisitions such as the one we are announcing today, we estimate that roughly half of our revenue in 2024 will be recognized in our Biologics segment, compared to approximately a quarter of our revenue over the last year.”

GUIDANCE:

Catalent sees FY2020 revenue of $2.87-2.95 billion, versus the consensus of $2.85 billion.

The Company is raising its previously issued financial guidance, primarily to account for the January 1, 2020 closing of the long-pending acquisition of Bristol-Myers Squibb’s biologics, sterile, and oral solid dose product manufacturing and packaging facility in Anagni, Italy. For fiscal 2020, the Company now expects:

• Revenue in the range of $2.87 billion to $2.95 billion, compared to the previous range of $2.78 billion to $2.88 billion;
• Adjusted EBITDA in the range of $711 million to $735 million compared to the previous range of $700 million to $730 million; and
• Adjusted Net Income in the range of $307 million to $331 million compared to the previous range of $300 million to $330 million.
• A fully diluted share count in the range of 160 million to 161 million shares on a weighted-average basis, compared to the previous range of 159 million to 160 million shares on the same basis, counting the Series A preferred shares as-if converted.

For earnings history and earnings-related data on Catalent (CTLT) click here.