Catalent ($CTLT) is investing in infrastructure again, spending to flesh out its European network of storage and packaging facilities in response to an increase in demand on the continent.
First, the company has tripled its frozen storage capacity at an outpost in Schorndorf, Germany, in tandem boosting its technology for churning out prefilled syringes. Next, Catalent increased the controlled-substance storage space at a Deeside, U.K., facility by 50%, and, at its Bathgate operation in Scotland, the company added cryogenic storage technology, ideal for storing stem cells. Finally, in Bolton, U.K., the company bought two chiller units that should boost the site's output by more than 10%, the company said.
The moves follow a similar expansion in the U.S., where Catalent has invested heavily in its drug development and manufacturing operations since going public last year, part of what the company calls a commitment to keeping up with the latest technology.
"A key part of that commitment is ensuring that our facilities are well aligned with the current, emerging and future needs of our customers, as evidenced by our recent investments in Europe and the harmonization of key systems across all Catalent sites," Chief Operating Officer Gerry Hepburn said in a statement.
And the company's continued expansion shows up in its financials. Last quarter, Catalent's net revenue came in at $455.8 million, a 3% increase over the prior year, driven by a 33% jump in medication delivery services and 6% growth in clinical services that compensated for a 3% decline in its oral technology business.
Catalent attributes some of that growth to its recent acquisitions of Redwood Bioscience, a longtime partner with a proprietary approach to antibody-drug conjugates, and Micron Technologies, a company that specializes in helping drug developers reduce the size of their therapeutic particles to boost deliverability and bioavailability.
- read the statement