Why Catalent Shares Are Falling Today

  • Life-sciences company Danaher Corporation (NYSE: DHR) is reportedly no longer considering a takeover of contract manufacturer Catalent Inc (NYSE: CTLT) after expressing interest in buying the company earlier this year.

  • While Danaher’s interest has cooled, it’s possible that Danaher could try and revive a deal conversation later, Bloomberg reported citing one of the people close to the matter.

  • A deal between the two would create a giant in bioprocessing or using living cells to create drugs or therapies.

  • A representative for Catalent declined to comment, while a representative for Danaher didn’t immediately comment.

  • Danaher has become a life sciences-focused company since spinning out its industrial business arm Fortive Corp. in 2016. It provides bioprocessing tools and instruments to manufacture and research complex drugs.

  • Bloomberg reported back in February that Danaher has expressed interest in acquiring Catalent.

  • The report comes after Catalent announced that it had encountered productivity issues and higher-than-expected costs at three of its major manufacturing plants — expected to hurt its financial results for the fiscal year.

  • Catalent’s CFO, Thomas Castellano, has also stepped down and has been temporarily replaced by company veteran Ricky Hopson.

  • Price Action: CTLT shares are down 2.11% at $44.35 on the last check Tuesday.

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Source: https://finance.yahoo.com/news/why-catalent-shares-falling-today-155215466.html