Catalent, a known international player in respiratory, injectable and oral drug delivery mechanisms, announced its terms for the company’s Initial Public Offer (IPO) on July 18, 2014. The company, headquartered in Somerset, New Jersey has plans to collect about $871 million through the offering of 42.5 million shares. The price of each share has been set between $19 and $22.
If the average of the range is taken into consideration, then Catalent will be valued at about $2.5 billion in the market.
The Catalent company started life as a part of Cardinal Health. It was previously known as Performance Technologies and Services. Cardinal Health (NYSE: CAH) was acquired by Blackstone (NYSE: BX) in 2007 when the latter paid about $3.3 billion for the company.
Catalent manufactures approximately 70 billion doses and caters to about 7,000 products a year. Important customers of the company include GlaxoSmithKline (NYSE: GSK), Actavis, Teva (NYSE: TEVA), Pfizer (NYSE: PFE), Merck (NYSE: MRK) and Johnson & Johnson (NYSE: JNJ).
Catalent began operations in 2007. It clocked approximately $1.8 billion in terms of sales revenue for 12 months until March 31, 2014. The company will be listed on NYSE under the name of CTLT. The bookrunners of the deal are Deutsche Bank (NYSE: DB), Morgan Stanley (NYSE: MS), Bank of America (NYSE: BAC), JP Morgan (NYSE: JPM), Jefferies (NYSE: JEF) and Goldman Sachs (NYSE: GS). The expected date when the pricing will be decided is around July 28, 2014.
Product and service offerings
Catalent offers a wide range of services, including formulation, analytical, biologics and pre-formulation. The company claims to have a better development timeline and higher quality products. Its proprietary GPEx technology quickens large molecule drug development. The company has substantial capabilities when it comes to formulation of oral and inhaled dose forms and softgel technologies. Catalent, on its website, claims of solving complex bio-availability, permeability and solubility challenges.
It assists its customers in making solutions for drug delivery. It has an excellent track record in helping clients with treatments, which boost solubility and permeability. Its solutions also improve the ease of administration and patient compliance.
The company has its own special delivery methods, which include softgel solutions, inhaled dose forms and controlled release. These improve the performance of the products and help the patients with a quicker recovery. Catalent also possess the expertise and technology to provide integrated packaging as well as manufacturing solutions to its clients across the globe.