© Reuters. FILE PHOTO: The logo of the Catalent plant is seen outside their location where millions of doses of the AstraZeneca coronavirus disease (COVID-19) vaccine were reportedly found in Anagni, Italy, March 24, 2021. REUTERS/Yara Nardi
(Reuters) -Catalent Inc cut its full-year net revenue and profit forecast on Friday, reflecting operational challenges and higher-than-expected costs after it flagged an over $400 million hit to both its annual sales and core profit expectations earlier this month.
The company manufactures drugs, vaccines and gene therapies at 55 different sites for major pharmaceutical companies, including Moderna (NASDAQ:) Inc, Novo Nordisk (NYSE:) and Sarepta Therapeutics (NASDAQ:), among others.
Catalent (NYSE:) said it continues to win significant new business, including the expansion of supply agreements with Novo Nordisk, and added its customer supply situation remains healthy.
“We believe we can sufficiently service our customers’ demand,” said Catalent CEO Alessandro Maselli on a conference call.
The contract manufacturer has been facing challenges at three of its major productions sites, which may affect its revenue in the third and fourth quarters due to a slower-than-expected ramp up in production capacity.
Maselli added Catalent had undergone nine successful inspections from the U.S. Food and Drug Administration in the last six months, of which only a few included observations and which “can be readily addressed”.
Catalent had delayed its earnings report twice this month, saying it had to make some adjustments to its financial statements related to the company’s Bloomington operations, triggering a delisting notice from New York Stock Exchange.
The company said it will record an increase of about $55 million in inventory reserve for the facility.
Catalent cut its full-year revenue in the range of $4.25 billion to $4.35 billion compared with the prior forecast of $4.63 billion to $4.88 billion.
The contract drug manufacturer now sees annual adjusted net income in the range of $187 million to $228 million, compared with the previous forecast of $567 million to $648 million.
Shares of the contract manufacturer were up 14% at $36.75 in early trade.
This story originally appeared on Investing