Catalent Completes $25 Million Expansion of its Clinical Supply Facility in Schorndorf, Germany

Rhea-AI Summary

Catalent, Inc. (NYSE: CTLT) has completed a $25 million expansion of its clinical supply facility in Schorndorf, Germany. The expansion adds 32,000 square feet of space, increasing capacity for temperature-controlled storage between 15-25°C and creating room for a new automatic bottle filling line. It also includes a dedicated area for Catalent's FastChain® demand-led supply service.

The Schorndorf site, Catalent's flagship European facility, offers comprehensive clinical supply services, including packaging, storage, and distribution. This expansion aims to support Catalent's pharma and biotech customers and enhance its ability to meet growing demand for clinical packaging solutions.

Positive

• Completed $25 million expansion of clinical supply facility in Schorndorf, Germany
• Added 32,000 square feet of space for temperature-controlled storage
• Installed new automatic bottle filling line
• Created dedicated area for FastChain® demand-led supply service
• Enhances capacity to meet customer demand for clinical packaging solutions

Negative

• None.

Market Research Analyst

Catalent's $25 million expansion of its Schorndorf, Germany facility is strategically significant. Enhancing temperature-controlled storage and adding a FastChain® demand-led supply service space signals Catalent's effort to cater to the high-demand clinical supply chain market. The FastChain service, leveraging Good Manufacturing Practices (GMP), is designed for timely and cost-effective regional supply of clinical materials. This positions Catalent to attract more biotech and pharma clients who require robust and reliable supply solutions. From an investor perspective, this expansion can potentially drive revenue growth as it aligns with increasing demand for clinical trial services, especially in Europe. Catalent has invested in automation, which can improve operational efficiencies and reduce costs in the long run. The facility now includes a fully automatic bottle filling line, indicative of a focus on scalability. Overall, this expansion could enhance Catalent's market position and competitive edge in clinical supply services, though it will require monitoring to see how effectively these new capabilities translate into financial performance over time.

Financial Analyst

Catalent's recent investment of $25 million in its Schorndorf facility expansion indicates a well-strategized capital allocation aiming for future growth. This addition of 32,000 square feet for temperature-controlled storage is important for clinical trials that require precise conditions, adding value to Catalent's service offerings. Financially, this move aligns with Catalent's broader growth strategy and its robust revenue generation of $4.3 billion in the 2023 fiscal year. The enhanced infrastructure supports their ability to handle more complex supply needs, potentially increasing their service capacity and customer base. In the short term, investors might be concerned about the immediate impact on financials due to the capital expenditure. However, in the long term, this investment should support revenue upsides and operational efficiencies, contributing to sustained growth. Investors should watch for subsequent quarterly reports to assess the ROI of this expansion.

Expansion adds more temperature-controlled storage and dedicated space for FastChain^® demand-led supply service

SOMERSET, N.J.--(BUSINESS WIRE)-- Catalent, Inc. (NYSE: CTLT), the leader in enabling the development and supply of better treatments for patients worldwide, today announced it has completed expansion of its clinical supply facility in Schorndorf, Germany. The Schorndorf site, Catalent’s flagship European facility, provides comprehensive clinical supply services, including packaging, storage and distribution.

Catalent Schorndorf Expansion (Photo: Business Wire)

The expansion increases the site’s footprint by 32,000 square feet (3,000 square meters), adding storage and handling of clinical trial supply materials at controlled room temperatures between 15 and 25 degrees Celsius. It also creates space in the original building to accommodate the installation of a new, fully automatic bottle filling line, as well as a dedicated area for Catalent’s FastChain^® demand-led supply service. These added capabilities will support a continued high level of service to Catalent’s pharma and biotech customers and the patients they serve.

“The Schorndorf site plays an important role in the strategic focus of the company and our ability to meet customer demand for clinical packaging solutions, including temperature-controlled services,” said Lorenzo Carletti, President, Clinical Development & Supply, Catalent, Inc. “We are pleased to bring additional capacity to the site for temperature-controlled storage and Catalent’s FastChain service so that we can meet the current and future needs of our customers.”

Opened in 1996, Catalent’s Schorndorf facility provides comprehensive clinical supply services including multi-lingual project services – including English, French and German – comparator sourcing, primary and secondary packaging, labeling, clinical storage and distribution, and returns and destruction. This co-located site also offers late-stage pharma product development and commercial services, including oral solid dose manufacturing and specialty packaging.

The company’s FastChain service is a continuous Good Manufacturing Practices (GMP) approach that decouples primary from secondary packaging to enable timely and cost-effective adaptation and regional supply of clinical materials on demand.

ABOUT CATALENT

Catalent, Inc. is a global leader in enabling pharma, biotech, and consumer health partners to optimize product development, launch, and full life-cycle supply for patients around the world. With broad and deep scale and expertise in development sciences, delivery technologies, and multi-modality manufacturing, Catalent is a preferred industry partner for personalized medicines, consumer health brand extensions, and blockbuster drugs.

Catalent helps accelerate over 1,500 partner programs and launch over 150 new products every year. Its flexible manufacturing platforms at over 50 global sites supply approximately 70 billion doses of nearly 8,000 products annually. Catalent’s expert workforce of nearly 18,000 includes more than 3,000 scientists and technicians.

Headquartered in Somerset, New Jersey, the company generated nearly $4.3 billion in revenue in its 2023 fiscal year.

MORE PRODUCTS. BETTER TREATMENTS. RELIABLY SUPPLIED.^™

View source version on businesswire.com: https://www.businesswire.com/news/home/20240716141571/en/

Investor Contact:

Paul Surdez

+1 (732) 537-6325

investors@catalent.com

Media Contact:

Laura Hortas

+1 (609) 240-7025

media@catalent.com

Source: Catalent, Inc.

FAQ

What is the value of Catalent's recent expansion in Schorndorf, Germany?

Catalent completed a $25 million expansion of its clinical supply facility in Schorndorf, Germany.

How much additional space did the Catalent (CTLT) Schorndorf expansion add?

The expansion added 32,000 square feet (3,000 square meters) to the Schorndorf facility.

What new capabilities does the Catalent Schorndorf expansion provide?

The expansion adds temperature-controlled storage (15-25°C), a new automatic bottle filling line, and a dedicated area for FastChain® demand-led supply service.

When was Catalent's Schorndorf facility originally opened?

Catalent's Schorndorf facility was originally opened in 1996.