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Catalent (CTLT) Expands Packaging Capabilities at Japan Facility

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Catalent, Inc. CTLT recently announced that it has expanded its primary packaging capabilities at its clinical supply facility in Shiga, Japan. The company has installed a high-speed blister packaging line to augment its existing automated bottling line.

The new blister packaging equipment is similar to that available throughout Catalent’s clinical supply services network, thereby providing maximum access and flexibility to customers undertaking this work globally.

The site was opened in October 2021 to support customers locally and globally, offering flexible clinical supply solutions, including Catalent’s FastChain demand-led supply, white glove handling and logistics.

The latest expansion of primary packaging capabilities is expected to solidify Catalent’s global foothold in the Clinical Supply Services space.

Significance of the Latest Expansion

Catalent’s clinical supply facility in Shiga, Japan offers customers bi-lingual (English and Japanese) project and clinical supply management, along with services which include packaging and labeling, storage and distribution, controlled drug and cold chain storage and handling. It also provides in-country returns and destruction services.

Per Catalent’s management, the high demand for primary packaging in Japan is leading customers to increasingly look for integrated providers of clinical supply expertise and services. The Shiga facility is a key hub within the company’s Asia-Pacific clinical supply services network. On the back of these new capabilities that are now fully operational, Catalent expects to provide a comprehensive range of services that are customizable to customers’ specific needs.

Industry Prospects

Per a report by MarketsandMarkets, the global clinical trial supplies market is anticipated to reach $2.9 billion by 2026 from $1.9 billion in 2021 at a CAGR of 8.5%. Factors like rising research and development expenditure in pharmaceutical and biopharmaceutical companies, and the increasing number of clinical trials worldwide are likely to drive the market.

Given the market potential, the latest site expansion will likely provide a significant impetus to Catalent’s global Clinical Supply Services business.

Notable Developments

This month, Catalent entered into a development agreement with MigVax to leverage its proprietary Zydis Bio orally disintegrating tablet technology for delivering the MigVax-101 vaccine.

In May, Catalent announced that it has commenced a $175-million project to expand its flagship U.S. manufacturing facility for large-scale oral dose forms in Winchester, KY.

Also in May, Catalent introduced its new UpTempo Virtuoso platform process for the development and CGMP (current good manufacturing practices) manufacturing of adeno-associated viral vectors.

Price Performance

Shares of the company have lost 4.2% in the past year compared with the industry’s 30.6% fall and the S&P 500's 12.1% decline.

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Zacks Rank & Key Picks

Currently, Catalent carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Omnicell, Inc. OMCL and Masimo Corporation MASI.

AMN Healthcare, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.6%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare has gained 14.8% against the industry’s 44.6% fall in the past year.

Omnicell, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 20%. OMCL’s earnings surpassed estimates in three of the trailing four quarters and missed the same in the other, the average beat being 13.4%.

Omnicell has lost 22.5% compared with the industry’s 54.8% fall over the past year.

Masimo, carrying a Zacks Rank #2 at present, has an earnings yield of 3.4% against the industry’s negative yield. MASI’s earnings surpassed estimates in the trailing four quarters, the average beat being 4.4%.

Masimo has lost 45.3% compared with the industry’s 25.6% fall over the past year.


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