CRO

Catalent boosts its profits despite some flat revenue

Catalent ($CTLT) came through with a big earnings boost last quarter, shaking off some deleterious currency fluctuations and cutting costs.

The company, which makes its money doing pharma's heavy lifting in R&D and manufacturing, swung to a $31.5 million profit in its fiscal third quarter, more than quadrupling its $6.7 million tally in the same period last year. Revenue came in at $446.6 million on the quarter, a roughly 1% reduction that Catalent blames on the effects of a strong dollar.

And, preparing for further currency issues, Catalent is dimming its full-year revenue projection by about 1% at midpoint, expecting roughly $1.8 billion for fiscal 2015.

But the company believes its baseline business remains healthier than ever. At constant currency, Catalent's revenue grew 8% on the quarter, led by a 10% jump in its banner oral technologies segment, 4% growth in clinical services and a 2% increase in medication delivery.

And Catalent, long an acquisitive company, believes its latest buyouts are paving the way for future growth, CEO John Chiminski said.

"Our recent acquisition of Pharmapak Technologies complements our existing oral dose facility in Australia and enhances our ability to offer integrated solutions to the local market," Chiminski said in a statement. "Additionally, the expansion of our Winchester manufacturing facility will allow us to seamlessly meet increasing demand from existing and new customers."

- read the results