CDMO Catalent will continue to bring new online services in Oxford and Princeton as it looks to keep usage rates strong in the post-COVID period.
Catalent expanded its production footprint in April this year after obtaining the 74,000-square-foot Vaccine Innovation and Manufacturing Centre (VMIC) near Oxford from the UK government for an undisclosed amount. The Contract Development and Manufacturing Organization (CDMO) has also committed to making an investment of up to $160 million in the facility in the future.
However, evolving industry dynamics driven by declining demand related to COVID-19 led the company to protect the site, according to a Catalent spokesperson.
“To ensure that Catalent continues to operate successfully and sustainably, the company has to scale back and delay some of its investment plans,” BioProcess Insider said.
“This includes the temporary suspension of structural activities at our Oxford plant, which remains a component of Catalent’s long-term expansion plans in Europe. “
The capacity expense maintenance (CAPEX) allocation discussed in Catalent’s call in the first quarter of fiscal year 23 earlier this month, as well as a delay in commissioning a 30,900-square-foot mobile treatment plant in Princeton, New Jersey, acquired from Erytech Pharma for $44. 5 million earlier this year.
“Given the existing macroeconomic environment, our assessment is that what we have is more than enough for the road ahead for the coming quarters,” Chief Executive Officer Alessandro Maselli told stakeholders.
He called for the resolution to stop Oxford and Princeton a “reformulation” to “keep our usage rates in grades to continue generating margins and money flows. “
Chief Financial Officer Tom Castellano added points negatively impacting margins “including headwinds from COVID-like volume declines, inflationary and chain pressures, initial prices similar to our Princeton and Oxford acquisitions. “
Net revenue source fell 52% to $61 million year-over-year, while the contribution of Catalent’s biologics business, which includes giant molecule drug progression and manufacturing, as well as the gene and mobile treatments business, declined 2% to $523 million. .
Castellano said Oxford and Princeton are now expected to “now come online in fiscal 2024 and generate profits in that era compared to the current fiscal year. “
Categories: BioProcess Insider, Facilities & Capacity