(Reuters) -Catalent Inc cut its full-year net revenue and profit forecast on Friday, reflecting operational challenges and higher-than-expected costs after it flagged an over $400 million hit to both its annual sales and core profit forecasts earlier this month.
The contract drug manufacturer now sees its full-year revenue in the range of $4.25 billion to $4.35 billion compared with its prior forecast of $4.63 billion to $4.88 billion.
Catalent said it now sees adjusted net income for the year in the range of $187 million to $228 million, compared with the previous forecast of $567 million to $648 million.
Catalent manufactures drugs, vaccines and gene therapies at 55 different sites for major pharmaceutical companies, including Moderna Inc’s COVID-19 vaccine, Novo Nordisk’s weight-loss drug Wegovy and Sarepta Therapeutics’ gene therapy for Duchenne muscular dystrophy (DMD).
The company said it continues to win significant new business, including expansion of supply agreements with Novo Nordisk, and that its customer supply situation remains healthy.
The contract manufacturer has been facing challenges at three of its major production sites, which may affect its third and fourth-quarter revenue due to a slower-than-expected ramp up in production capacity.
After delaying its earnings report twice this month, Catalent, which received a delisting notice from the New York Stock Exchange, said it will provide a business update for the third quarter on a conference call on Friday rather than a normal review of its financial results.
Shares of Catalent reversed losses to be up 7.7% at $34.63 before the bell.
(Reporting by Bhanvi Satija, Sriparna Roy and Pratik Jain in Bengaluru; Editing by Krishna Chandra Eluri)
