Catalent ticks up revenue as IPO pends

Global contractor Catalent swung to a profit last quarter thanks to a slight sales increase and some ongoing restructuring, staying the course as it plans to go public in an IPO worth $100 million or more.

Net revenue came in at $453.1 million on the quarter--up 1% from the same period in 2013--as growth in Catalent's medication delivery and clinical development segments offset declines in modified release and oral technologies, the company said. The outsourcing mainstay posted a $6.7 million profit on the quarter, beating out last year's $18.8 million loss after shaking off charges tied to restructuring.

On a segment basis, Catalent's leading oral tech business slipped 5% to $287.3 million, while its fast-growing delivery unit leapt 21% to $65.4 million, and the wide-ranging development and clinical arm grew 12% to $103.7 million.

Meanwhile, the Somerset, NJ, company has filed to go public and trade on the Nasdaq under "CTLT," seeking $100 million. Since filing its first S-1 in late January, the company has yet to specify how many shares it plans to offer and at what price, and IPO research firm Renaissance Capital believes Catalent could end up raising nearly $500 million.

Catalent, which private equity outfit Blackstone bought from Cardinal Health for $3.3 billion in 2007, has its hand in nearly every sector of the global pharmaceutical industry. In its fiscal year ended last June, the company pulled in about $1.8 billion in revenue, a roughly 6% jump over the previous year. Catalent reported a $46.8 million loss in the same period, as it spent big to expand its global reach and watched cost of sales alone claim about 68% of its revenue.

Catalent said it plans to spend its IPO raise on outstanding debts and general corporate purposes. The company employs about 8,500 people around the world and has relationships with 85 of the top 100 branded drug marketers, according to a filing.

- read the results