Catalent has warned its financial performance is set to be impacted by productivity issues and higher-than-expected costs at three of its facilities, including two of its largest manufacturing facilities, sending its stock tumbling by more than 25%.
The contract drug manufacturer said on Friday that it expects its financial results for the third fiscal quarter and outlook for the remainder of the 2023 fiscal year will be adversely impacted by the issues.
Catalent is set to report its results for fiscal 3Q, ended March 31, 2023, before the market opens on May 9.
Among its impacted facilities is the company’s gene therapy manufacturing site in Harmans, Maryland, where the company said plans to increase capacity during 3Q to ramp up production for a consumer product were slower than expected.
Catalent said it also experienced productivity challenges and higher-than-expected costs at its drug product and drug substance manufacturing facilities located in Bloomington, Indiana and Brussels, Belgium.
At its Harmans and Bloomington plants, the company said it does not expect to make up for lost production until after the close of the current fiscal year.
Further, the company announced the departure of its CFO Thomas Castellano. Ricky Hopson, who has been serving as the company’s president, division head for clinical development and supply will take on the role of interim CFO effective April 14.
Catalent’s shares fell 26.3% to US$46.65 on Friday morning.
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