Advertisement
Australia markets closed
  • ALL ORDS

    8,002.50
    +39.40 (+0.49%)
     
  • AUD/USD

    0.6644
    -0.0021 (-0.32%)
     
  • ASX 200

    7,749.70
    +34.20 (+0.44%)
     
  • OIL

    77.94
    -0.56 (-0.71%)
     
  • GOLD

    2,326.70
    -28.10 (-1.19%)
     
  • Bitcoin AUD

    102,154.46
    +118.35 (+0.12%)
     
  • CMC Crypto 200

    1,427.76
    +14.80 (+1.05%)
     

Catalent's (CTLT) Latest Partnership to Boost Clinical Trials

Catalent, Inc. CTLT recently entered a strategic partnership with Siren Biotechnology. The tie-up aims to support the development and manufacturing of Siren Biotechnology’s adeno-associated viral (AAV) immuno-gene therapies.

The latest partnership is expected to be a significant stepping stone for its Biologics business and solidify its foothold in the niche space.

Rational Behind the Collaboration

Under the partnership, Catalent will provide process development and cGMP (current good manufacturing practices) manufacturing of Siren Biotechnology’s AAV vector-based therapeutic candidates for use in clinical trials. Catalent will also support process optimization at its process and clinical development center in Baltimore, MD.

ADVERTISEMENT

Per Catalent’s management, the partnership is expected to pave the path for the development and commercial manufacturing of safe and high-quality AAV gene therapies to provide life-saving treatments to cancer patients.

Siren Biotechnology’s management believes that the tie-up will result in a robust manufacturing process that will move its therapeutic programs into the clinic as quickly as possible.

Industry Prospects

Per a report by Grand View Research, the global adeno-associated virus vector manufacturing market was valued at $767.7 million in 2022 and is anticipated to expand at a CAGR of 22.5% between 2023 and 2030. Factors like the increase in the number of clinical trials and clinical trial evaluations of AAV vector-based therapies and technological advancements in gene therapies are likely to drive the market.

Given the market potential, the latest tie-up will likely provide a significant impetus to Catalent in the cell and gene therapy space.

Notable Development

This month, Catalent reported its third-quarter fiscal 2024 results, wherein it recorded a year-over-year improvement in its overall top-line and bottom-line results. Management also confirmed to witness continued momentum in the Biologics segment, which partially drove an increase in consolidated sequential revenues and adjusted EBITDA margin for the second consecutive quarter.

Price Performance

Shares of Catalent have gained 68.2% in the past year against the industry’s 10.1% decline. The S&P 500 has witnessed 26.5% growth in the said time frame.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Rank & Key Picks

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

Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, Veeva Systems Inc. VEEV and Ecolab Inc. ECL.

DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 13.6%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita’s shares have gained 41.9% compared with the industry’s 23.3% rise in the past year.

Veeva Systems, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 24.1%. VEEV’s earnings surpassed estimates in each of the trailing four quarters, with the average being 8.5%.

Veeva Systems has gained 15.4% compared with the industry’s 47.8% rise in the past year.

Ecolab, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 13.5%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.3%.

Ecolab’s shares have rallied 34.4% against the industry’s 10.1% decline in the past year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ecolab Inc. (ECL) : Free Stock Analysis Report

DaVita Inc. (DVA) : Free Stock Analysis Report

Veeva Systems Inc. (VEEV) : Free Stock Analysis Report

Catalent, Inc. (CTLT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research