Catalent Inc is close to a settlement deal with activist investor Elliott Investment Management, which will include the appointment new directors and a pledge to review strategic alternatives such as a sale of the company, Reuters reported, citing sources familiar with the matter.
The media outlet noted the US-based contract drugmaker is set to add four new directors proposed by Elliott to its board, including Elliott's global head of engagement, Steven Barg, a former Goldman Sachs (NYSE:GS) banker, along with former Pfizer chief financial officer Frank D'Amelio.
The company currently has 12 members on its board of directors.
Shares of Catalent climbed 8% to $49.29 in early trading on Tuesday.
Catalent has been hurt recently by production challenges and regulatory inspections at three major facilities, causing its quarterly revenue to fall by 17%, which has also impacted its profit margins.
The company is Novo Nordisk's main manufacturing partner for its popular weight-loss drug Wegovy.
Last week, Reuters reported that a second Catalent factory will begin filling Wegovy injection pens for Novo as part of an expanded supply agreement.
Shares of Catalent have fallen 47% over the past 52 weeks.
Contact Sean at sean@proactiveinvestors.com