Catalent is delaying its quarterly earnings filing with the Securities and Exchange Commission, citing a goodwill impairment charge of about $700 million that is connected to acquisitions within the CDMO giant’s consumer health and biomadalities unit.
The delay was posted in a regulatory filing (PDF) late on Nov 13.
It’s not the first financial reporting delay this year for Catalent. The company pushed back its filings on several occasions this year because of production problems at three manufacturing sites and performing a strategic review following a settlement it reached with activist investor Elliott Investment Management in August.
“The company is working diligently to complete the necessary work to file the 2023 form 10-K, which is expected on or before November 27th, and currently expects to file the form 10-Q promptly following the filing of the 2023 form 10-K,” the company said in the filing.
Catalent, like many in the industry, saw big manufacturing revenue boosts during the global COVID-19 pandemic. But, like with many pharmaceutical COVID drug and vaccine producers as the crisis began to subside, sales stumbled. The company recorded $4.23 billion in overall sales during its fiscal year 2023, an 11% fall from the prior year.
Earlier this year, rumors circulated in the market that life sciences conglomerate Danaher was looking to snap up Catalent for a “significant premium.” That talk all but disappeared in April when it was reported by Bloomberg that Danaher had dropped its plans. Although no reason for the change by Danaher was ever given, the news followed reports of Catalent’s productivity and cost problems.