Catalent, Inc. (NYSE: NYSE:CTLT), a leader in providing integrated services, delivery technologies, and manufacturing solutions for drugs and biologics, is currently under a detailed review process by the U.S. Federal Trade Commission (FTC). The company disclosed on Thursday that it received a second request for additional information from the FTC concerning its planned merger with Creek Parent, Inc., a subsidiary of Novo Holdings A/S.
This request, issued under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, extends the waiting period for the merger and signifies a more in-depth investigation into the potential antitrust implications of the deal. The extension will last for 30 days following Catalent's substantial compliance with the information request, with the possibility of a further extension or an earlier termination by the FTC.
Catalent and the Novo Nordisk (NYSE:NVO) Foundation, the ultimate parent entity of Novo Holdings and Novo Nordisk A/S, are actively working to gather the necessary information and documents for the FTC. Both parties have expressed their intention to cooperate fully with the regulatory body to secure antitrust clearance as quickly as possible.
Despite this regulatory hurdle, Catalent and Novo Holdings remain optimistic about the merger's prospects, aiming to finalize the transaction by the end of 2024. The merger, which was initially agreed upon on February 5, 2024, would result in Catalent becoming a wholly-owned subsidiary of Creek Parent, Inc.
Completion of the merger is still subject to various conditions, including the expiration or termination of the waiting period under the HSR Act, as well as obtaining necessary approvals and clearances from antitrust and foreign investment authorities in certain non-U.S. jurisdictions.
The information disclosed is based on a press release statement from Catalent.
InvestingPro Insights
As Catalent, Inc. (NYSE: CTLT) navigates through the regulatory landscape concerning its merger with Creek Parent, Inc., investors are keenly observing the company's financial health and market performance. Here are some insights based on real-time data from InvestingPro that may provide additional context to the company's current standing in the market.
InvestingPro Data highlights that Catalent's market capitalization stands at a solid 10.2 billion USD, reflecting the company's significant presence in the pharmaceutical services sector. Despite a challenging period, Catalent's gross profit margin remains at 17.94% over the last twelve months as of Q2 2024, indicating a level of operational efficiency in its core activities. Moreover, the company has experienced a notable 59.74% price uptick over the last six months, showcasing investor confidence and a positive market response which could be a signal of underlying strength as it approaches the merger completion date.
An InvestingPro Tip worth noting is that analysts predict Catalent will be profitable this year, a crucial factor for investors considering the long-term viability of the company post-merger. Additionally, with the stock trading near its 52-week high, at 93.8% of this threshold, it suggests that the market sentiment around Catalent is currently bullish.
For investors looking for a deeper dive into Catalent's financials and market predictions, InvestingPro offers a comprehensive set of additional tips. In fact, there are 9 more InvestingPro Tips available that can provide further insights into Catalent's performance and outlook, which can be found at: https://www.investing.com/pro/CTLT. To access these insights and more, use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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