Catalent posts flat revenue as currency woes bite into growth

Catalent Pharma Solutions ($CTLT) remained stagnant in its fiscal second quarter, as global currency fluctuations undid baseline growth in its banner businesses.

The company posted $454.9 million in service revenue on the quarter, roughly in line with what it made in the same period last year. At constant currency rates, Catalent's billings grew 6%, the company said. For the first half, the New Jersey drug developer remained flat at $877.9 million in revenue, which would have amounted to 8% growth without currency changes, according to Catalent.

Oral technologies, the company's largest segment, dipped 8% to $255.1 million in the quarter, while its clinical services business grew 22% to $131.6 million and its drug delivery operation decreased 4% to $71.1 million.

Some of Catalent's sluggish growth can be attributed to a tampering issue at its Beinheim, France, facility that led regulators to shut down production. Catalent has said it hopes to get the plant back up and running next month.

"We are pleased with our underlying operational performance during the second quarter, highlighted by constant currency revenue growth across all three of our reporting segments, despite near-term challenges with the Beinheim facility that we are actively remediating," Catalent CEO John Chiminski said in a statement. "... As we enter the second half of the fiscal year, we remain focused on innovation and expanding our market share through continued organic growth initiatives and capitalizing on recent strategic acquisitions."

Catalent is lowering its fiscal 2016 projections by about 9.8% at midpoint, expecting roughly $1.8 billion in annual revenue.

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