Catalent, Inc. (NYSE: CTLT) inches up in pre trading session on Tuesday as the company gives a business update. While complete financial information and operating data for the Company’s third fiscal quarter ended March 31, 2023 are not yet finalized, the Company expects that productivity issues and higher-than-expected costs experienced at three of its facilities during the quarter, including two of its largest manufacturing facilities, will materially and adversely impact the Company’s financial results for the third fiscal quarter and its outlook for the remainder of the 2023 fiscal year.
The company also announced today that Ricky Hopson would take over as Interim Chief Financial Officer on April 14, 2023. Catalent has hired a top global executive search company to explore applicants for a permanent Chief Financial Officer position.
The Company’s gene therapy manufacturing site in Harmans, Maryland, near the BWI airport, was one of the facilities that experienced productivity issues. The Company’s plans to increase capacity for a customer’s product during the third quarter in order to ramp production were slower than expected. During this ramp-up period, certain operational challenges, including those related to the initial deployment of a new enterprise resource planning (ERP) system at BWI, significantly reduced the site’s expected revenue in the third fiscal quarter, and will also have an impact on revenue previously expected in the fourth quarter.
The need to devote site resources on key regulatory inspections involving the BWI site, which were successfully completed, delayed timely resolution of these concerns. The ERP-related issues were of an operational nature and will have no impact on the Company’s ability to prepare timely and accurate financial statements.
Ricky Hopson, who had been serving as the Company’s President, Division Head for Clinical Development & Supply, will take over as Interim Chief Financial Officer on April 14, 2023, following the departure of Thomas Castellano as the Company’s Senior Vice President and Chief Financial Officer on April 13, 2023.
The President and Chief Executive Officer, Alessandro Maselli stated that Ricky is a seasoned financial leader who is well familiar with Catalent and can successfully oversee our finance operation during this interim time until we find a new, permanent CFO. They also express gratitude to Tom for his 15 years of service, during which he was instrumental in their successful initial public offering in 2014 and held many senior roles. They wish Tom the best of luck in his future undertakings.
