Catalent-Repligen Merger 'Seems Unlikely,' This Analyst Says

  • Yesterday, Catalent Inc CTLT announced to acquire Metrics Contract Services for $475 million.
  • Keybanc notes that the deal strengthens CTLT's oral delivery portfolio and targets rapidly growing biologic applications.
  • Metrics produces highly active pharmaceutical ingredients that are very difficult to produce but very potent in small doses. 
  • "After recent acquisitions and capacity expansion on the cell and gene therapy front, this acquisition will continue to balance CTLT's portfolio, adding to its newly defined Pharmaceutical & Consumer Health segment, a ~$2.2 billion business that combined its legacy oral segments." Keybanc analyst wrote
  • Some media outlets cited Catalent making a bid for Repligen Corporation RGEN, but Keybanc thinks it seems a stretch. 
  • The analyst says that a merger of equals seems unlikely with Catalent's $23 billion market cap and levered balance sheet compared to RGEN's $14 billion equity value.
  • Price Action: CTLT shares closed at $109.94 on Friday.
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