CTLT - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Catalent Fiscal 2020 Q4 Earnings Call and Webcast. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Paul Surdez, Vice President of Investor Relations. Thank you. sir. ahead, go Please

Paul Surdez

and fourth for fiscal quarter financial everyone to year us review results. Catalent’s and thank morning, joining you today XXXX Good full year

Chief are on presentation President Vice which our our call Financial our on Chiminski, call on me see Chief and Investor today is Please at for Joining Chair Joseph, available the and www.catalent.com. and Relations supplemental agenda Executive Officer. Senior Slide Officer Wetteny of John website this X

most make from forward-looking may detail. measures. GAAP to will earnings XX-Q comparable and operating We During refer reconciliations that on release pandemic. additional the measures. the financial later our the that management for provides be results, Slides to call and you non-GAAP related on condition, today statements to uncertainties It bear COVID-XX Form discuss issued X actual information non-GAAP to today, and more SEC refer and including the X Slide has results with management’s those measures filed possible X financial just is to our and performance risks could Catalent’s differ the expectations. our directly

with over presentation. Now, to like turn remarks the of X John I Chiminski whose call begin would Slide the to

John Chiminski

Paul to Thanks, and the everyone welcome call.

safety XX have as employees maintained our As continuity. very our the July our XXXX. business so we of pandemic, preannouncement doing top release had already and a Catalent health fiscal foreshadowed, the on and strong finish maintained Throughout priority in to

open these produce dedication the for the medicines not and financial Without of We our our robust been possible. safe organic would that are including care our growth, essential results, facilities keeping record and employees patients. are have employees, deliver develop to while results and we available very pleased so

experienced and dedication in their of fiscal employees the round totaling to XXXX we to adapting our and employees onsite related dedicated professionalism, acknowledge $X pandemic I have have versatility committed measures support grateful onsite you operational. enhanced this other and another patient-first of maintained this bonuses such, be have recently flows of by first around pandemic, financial production kept the group and not half their million recognize Catalent’s could service safety more authorized Throughout and and focus for thank these customer impacts employees production As facilities open that personally our site in their of teams employees. and adjusted

supply patients. to and work ensure with chain our customers suppliers continue We for customers their proactively our and to continuity

materials, higher this As thus causing part expanded impacting levels we of our inventory than safety working normal effort, raw of capital. stock our

not have supply we demand While experienced more identify, in shortages other situations, critical any at rapidly global resolve to the API navigate and we navigated our further To critical supply future. the potential to-date and protect supply may challenging supply to needs, successfully chain disruptions. of challenges and changing supply resources manufacturing continue components significant more have produce several for and commit

technology more several years, to in-demand areas manufacturing. drug development innovative made Catalent investments of and the portfolio their last shift to Over even and transformative has

company go-to vaccines a for now and are we potential result, a As COVID-XX treatments.

XX client in on currently are additional opportunities. discussions already regarding have segments XXX business COVID more been awarded our across and than work of four involved compounds We over all related

now cell accelerate wins biologics help to integrated and have developed was these Some therapy. antibody, Catalent’s is including investigational using of technology with of leveraging this which line been monoclonal potential OneBio development Catalent’s announced, our GPEx work publicly COVID-XX Humanigen’s development proprietary suite

the response work broad viral vector, programs in and product for Anagni as every substance J&J, and development, illustrates COVID-XX Arcturus and the manufacturer capabilities COVID-XX supply potential as go-to in range last position COVID-XX for agreements greater a we over and for work also the have drug products strategic they behalf treatments, of our a high-profile candidates The investments in of on drug Moderna, protein-based. but company and sense and manufacturer Johnson represent our for of nucleic provides for Johnson made work important we geographically vaccines for COVID-XX with in wide substance of and vaccine and the manufacture product customers for of multi-dose Catalent for the major also few COVID-XX certain including candidates provide the addition drug position capacity announced made over be drug to several doses next of in illustrate in vaccine and in Bloomington work capability all for billions our enabled U.S. years. years, classes strategic These few acid We have several Europe, recent Madison Spicona investments, ongoing and potentially customers to in vial AstraZeneca concert to This BWI vaccine technologically in & a only manufacturing AstraZeneca. filling not year.

and X, like Slides on Now, which would the X. full I quarter of financial covered to and summary X from are provide fourth our operational year, highlights a and

XXXX measured Our fourth or XX% quarter constant million, quarter currency. the in XX% currency revenue constant of the for $XXX fourth including in to fiscal to growth organic as compared increased reported of XX%

XX% EBITDA for fiscal organic growth the measured quarter XX%, in in constant $XXX quarter fourth fourth million currency. of was of the XXXX by adjusted as reported of currency, XX% Our above constant or including

and or biologics results growth segment, year the the in high per $X.XX and related was for in organic income quarter. performance in some Clinical revenue Softgel but continued $X.XX trials Biologics revenue fourth in the to period, specialty segment segment in fourth expected. and projects $XXX fiscal created tailwinds Technologies related our growth quarter from were XX% million quarter programs of organic of share, the the quarter, in the with revenue strong anticipated in and Among COVID-XX excluding pandemic’s growth segments, was COVID-XX EBITDA per when single-digits to disruption adjusted strong robust. period. the contributing net share to revenue the fourth less Biologics growth factors still the delivery segment oral has up year compared growth in corresponding diluted organic for Our significant double-digit While was our than the fourth the was organic including the net growth our XX% quarter flat its Services mid-teens Revenue deceleration better the from prior The pandemic, during clinical segment as corresponding Supply in revenue but Oral reported third the than XXXX, was prior

million of fiscal the EBITDA revenue currency XX% was targets and growth organic revenue XXXX, Fiscal came long-term constant was in the $X.X our fiscal X% adjusted above and billion of high-end XX% For growth XXXX respectively. organic organic under and and Notably, just prior compared currency to prior months constant rates was our X growth XXXX rate XX% the last was only EBITDA fiscal Therapy compared to $XXX for Gene organic contributed Adjusted of the the for our growth integrated fiscal business to year. fiscal year. year.

to that July. would late some in at of our we greenshoe quarter, proceeds EBITDA full In on million balance call, its which our an through in second our quarter strong a since growth million offering, to our equity raised X.Xx equity in in have million of were taken of flexibly year, cash combined additional to enables out lowered repay successful on I adjusted our like through of $XXX the strength you highlights when of offering the our with underwriter third the exercised June, of our business. This for available with $XXX net fiscal remainder net that turn invest caution, general to the last versus we with our purposes. offering under leverage June operational XX $XX in for option raised the used X.Xx revolver end abundance borrowings third the this walking proceeds Before comment sheet, the of which an was the for corporate Catalent

on at billion. hand more than cash current $X Our stands

to While this arise, position the strategic flexibility bolt-on our our plan through cash growth investments. opportunities our may cash hand strategy on primary is to on fund execute to provides organic use that

Over announced meet by years, recently meet substantial across created projects new X enable pandemic. to have business, us which that to some will accelerated demand of the capital been demand anticipated our the have last several we

Given in strong debt enable in of expect our levels and future. position to CapEx strong long growth continued XXXX we our maturities, elevated to organic the continue cash fiscal

spend XXXX and projected is than to billion or million projects $XXX particularly year were projects, is for in reassigned programs. growth to be CapEx range overwhelmingly our in that including accelerated more the $X.X either directed fiscal Our segment, COVID-XX to Biologics

quarter, integrating the further we continue therapy including we build grow fourth acquired assets the on our Biologics capability. and premier During our to cash our by our deploying capacity invest and in and cell segments, hand business to gene and

our the for flagship business, FDA capacity the substantial we manufacturing suites BWI the for commercial inspection Therapy first continued of also the As facility our we manufacturing in June airport. in hosted near have Gene Gene Therapy build-out

details continue by University in manufacture the site, substance atrophy approved year. at commercial recently also that manufacturing, milestone the treatments gene drug the to of the for FDA Following of ready suites enhance for at our became to deliver the was cell acquisition addition build acquisition meet further operational expected to the leader, commercial across inspection, at plan CRISPR-based product. AveXis BWI complementary more is and they suites our to coming the advanced and accelerated campus. with the be further as for our as BWI would as a was well The facility Gene strategic therapy this for Therapy cross-selling the cell CDMO growing located the Earlier pleased viral for We fifth suites with for services strategic support announced announce supply therapy expanded announced to we out Baltimore. to Catalent and Houston. approved a on has industry vector-based suite our for platforms the we significant February, expanded X cell of substance an Editas’ by ability utilizing relationship This other Gene gene MaSTherCell, our related and end Gene the vector patients. built And of to exemplifying candidate. medicines supply site Catalent therapy whole weeks. new and and our by bring the vaccine produce demand to Oxford’s at our services. services both Editas of customers complementary opportunities To-date, our help services AveXis’ the the this customers to their offerings patients. clinical adenovirus COVID-XX Catelent and meet rapidly production we clinical as remaining other that suite be month, therapy This development for Editas FDA delivery as to approved at to Therapy the team facility investment of Through has MaSTherCell envisioned are one the benefits calendar this of gene be and technology our muscular Catalent’s include relationship, our first realize the to Board BWI and to in We recently AstraZeneca multiple a life-changing complex of Directors Therapy therapy, the In in we manufacturing facility will medicines therapy to spinal manufacturing gene manufacturing for commitments undertaken to the drug additional our manufacturing capabilities. offerings, same order dedicated provide patients gene in

to engineered our administration range finished and all, these vital to addition, from trial part play cell and delivering trials. raw clinical also medicine an will CSS In supplying for our support for integrated clinical critical product in segment viral production distribution integral will of In materials, vectors storage patients. therapies

execute our drug on to product CapEx biologics drug expand and enhance our offerings. to plans continue substance also We and

at meet with to reviewed plans Bloomington investments As joint needs we we expansion leading through the facility J&J, our for vaccine candidates. accelerated its quarter significantly drug last COVID-XX product our

an which we summer, including as opportunity and or expand candidate. well storage this vial candidates, high-speed one vaccine approved Directors support filling to for U.S. programs, the support to the vial providing distribution to market, and clinical COVID-XX agreement. to study COVID-XX high vaccine also of X labeling Catalent vaccine with to capital significantly of for the new Moderna’s and dependent throughput candidates XXX supply Moderna capacity Bloomington its Phase of clinical the dedicated will of the packaging both regulatory existing million support to COVID-XX as an services, that recently a at customer to add come vial doses to as With vaccine line before supply is Board another lines in to and also initial Bloomington XXXX. site two fiscal filling end online Over packaging intended well is expected expenditure our provide announced candidates, potentially upon approval production

rapidly further in Europe, also our to are product at coming J&J. for to capacity we both At also the on In drug vial facility, two Anagni product and investment lines AstraZeneca weeks. dedicated We capabilities. candidates our vaccine details COVID-XX we drug plan site announce expanding this the for

We scale up clock the capacity vaccine round have and support be for accelerated the of these launch candidates should potential rapid either manufacturing to the approved. schedules

of its in installation enhancements create addition, our a technology for analytical quality plan and XXXX. in under of foot we filling will of products to Limoges, The drug capable Center France a formulation facility biologics In Excellence to clinical facility as include invest vials, cartridges development syringes to flexible barrier XXX,XXX in with the of control or anticipated the completion modernization isolator square as high-speed European line well fill/finish services. and laboratories,

Excellence European market of Center bring biologic treatments ability faster. their new and to strengthen will global Limoges Catalent’s capacities biologics to and in new Our

We would we target XXXX Biologics the of comprise total of top XX% segment and our adjusted to one-third EBITDA fiscal one reviewing fourth some Biologics XX% less our I revenue XXXX company compared total the of segment revenue for and fiscal to from approximately in like by in of company to objectives continue revenue long-term growth our of the expect fiscal fiscal in strong company and XXXX, in fiscal quarter close quarter to our growing total and revenue XXXX. goals than XXXX.

issues EBITDA the to double-digit delivering pandemic, mission components our created focus deliver COVID-XX lives. necessary people and will which the better, new addition accelerated preparing adjusted including even our and In for by us on help guidance, revenue navigating to normal, we growth position live on several financial healthier better reflects critical on organic to to

patient-first for our pandemic safety our foundations including us. people, are and critical First, or of during focus in times not their our culture

to inclusive We our environment, employees company. stronger and engaging By are their all best and customers will and empowered, valued, where our respected their committed build work. to even inspired listening do a and diverse feel to we communities, people an

newly this Next, biologics to and will the stage, we in to the integrate full site and invest our order acquired bring Anagni of to complete continue the cell in business our year. next offering potential therapy

as to new the industry-leading will right continue acquisitions CDMO. an and bolt-on company across our seek We invest in the capabilities strengthen position to

working technology, invest quality to business Corporate our key commercial enablers first Finally, made science Report that this the toward in propels and include of commitments These talent. the we past will published excellence, Responsibility our continue the in and growth enablers while IT also April. and operational execution,

deliver who to XXXX deliver never global to – I As has to world our over our that know call trial health important. mission commitment products, our team products and customers and for clock and Wetteny like been around would now on a leading more fiscal working results guidance. to will are the materials financial around turn review and who our literally – our patients manufacturing partner life-saving the the for development medicines, clinical

Wetteny Joseph

Thanks, fiscal are introduced fiscal reporting fourth with segment and the both which segment’s discussion performance, our XXXX. fiscal XXXX presented XXXX of Technologies to quarter Softgel presents XX, Oral on and will basis John. turn the the results Slide where begin on the a at morning of start this segment. we Please I

segment past commentary around in currency. earnings calls, constant in As growth will my be

demand equipment Australia, X% prescription organic in growth production in the quarter social divestiture higher-margin well in period. protective to across of driven over increased to thank America the X% X% as matter portfolio distancing. and that respectively. XXXX EBITDA excluding XXXX, facilitate and site in by compared growth consumer in Latin of segment’s segment primarily North segment Europe, of bonuses, segments to revenue EBITDA the X% was you products in America, and North were Braeside, After put all by costs operating additional related and of with elevated adjusted increasing business SOT million, Softgel Oral as COVID-XX, America. workflows segment of This increased impacted health segment’s Technologies in impact same for revenue the October and and place $XXX.X Margins the including manufacturing the grew fourth the

XXXX, Looking growth revenue trend growth difficult million over-the-counter in contributor into target half long-term for in of was Slide fiscal fiscal growth consumer organic XXXX factored The which particularly which and to range. to same demand consumer shows this target our cough, back EBITDA growth of up the ahead in to X%, over a we Biologics X% growing are XXXX. well above long-term been to increased significant we range guidance relief period. XX $XXX.X XXXX, has fiscal XXXX, comparison to To SOT strong segment demand of fourth of for segment, XXXX fiscal XX% segment the the will XXX% which is had health, be in our a organic SOT’s in as in products. due a seeing business, to the recorded was lower quarter health with compared XXXX, revenue fourth the start which pain quarter, cold the facing

significant the was year to to in segment percentage six in organic percentage quarter. contributed EBITDA due the part to our include revenue fourth only Gene and inorganic revenue and May EBITDA so growth, The growth acquisitions substantially segment compared contributed it acquisitions EBITDA segment occurred period. and of segment for for Therapy points initial the of quarter to growth the acquisition, While growth Biologics the prior contributed XXXX, which to points revenue within to XX

attribute of COVID-XX we that that expansion to we Biologics MaSTherCell organic XXXX; that projects strong revenue Anagni for Bristol-Myers Cell fourth facility the non-BMS in to these segment. within which in brought in included demand segment. of margin both will quarter and for quarter segment XXXX. all falls and in The Note driven continue was part this including all record nicely we our the expanded an also business drug from work, and product in offerings organic did XXXX Our facility, and vaccine and we North Biologics January by to our America, in Squibb, growth to our drug acquired in product acquired substance growth compared Therapy the business, February the drug which of which part

XX% of this excluding programs, growth was While which million, new projects. COVID-XX-related is still a attributable portion revenue to these $XX roughly organic over growth was

to contributor of which gene calculation part organic May organic in key became therapy Another our growth our in revenue was Biologics our segment business, growth XXXX.

significant However, Biologics there the segment quarter, were contribution margin from that the despite growth the segments in impacted this year prior in negatively several compared fourth quarter factors period. to

required also to which safely elevated drive In capabilities impacted contribution would business of manufacturing and commercial our to on services, build like revenue facilities certain fourth bar chart related capacity in and investments the by the the Biologics headcount our one margin all manufacturing sourcing Slide the and negatively to costs during we shows the generated in component in on Biologics and XX, product I related continued expect growth facilities addition quarter operate to the of in strategic of amount the attention other. the draw activities to pandemic, to lower margin the which superior future services and out additions your supply to on quarter. hand development

approximately the of and revenue. development quarter XXX% has over in last Biologics represented fourth the grown the segment’s Over in XX% revenue year,

future strong As we eventually organic growth, commercialization. a portion to for because them foundation programs will development as of the noted serve move last quarter,

as to swings the less will compared somewhat fiscal quarter-to to and and performance proportion financial greatest development However, fluctuations manufacturing commercial and saw XXXX. in quarter revenue predictability we throughout lead in increase revenue of the

both and high fiscal demand therapies for and candidates on product capacity XXXX, global of expect European that embark American substance will North vaccine for drive levels facilities. COVID-XX manufacturing we our we drug drug As and demand in

and for the in manufacture Biologics of Looking of revenue comes materials impacts to segment. at dynamics, Catalent expect manufacturing procurement of products currently component margin. product affect the segment margins segment may distinct within fiscal sourcing with XXXX and Biologics low the We two the that and increase as and Catalent’s increase beyond, foresee raw the to components we volumes margin. attributable revenue high commercial

the in segment been program which of any sourcing quarter the the with with and margin XX our points XXXX, up formed are each otherwise procure mask in and $XXX.X to and associated customers the for of percentage of attributable percentage the one Catalent, the Note Slide materials, For fiscal our commercial revenue. Biologics margins the growth. Catalent XX% able is candidates the the sourcing compared revenue supplies Anagni components more XXXX. sourced of activity generally other OSD our may segment typically points average, Oral by XX% the averaging segments to to portion Catalent of segment has fee shows involve high well over of the facility that substantial contributed in quarter, the Indeed, A portion the of these generally to of to EBITDA to have below million EBITDA, X the services. fourth or recorded production Delivery single-digits. fourth charge XX part the cost for COVID-XX this up to Specialty and that segment quarter complex is revenue

one until the growth of in quarter, XX% recent facility by to over where compared participation including organic XX% the segment were fourth XXXX Anagni’s delivery of time. As product margins to into be we product adjusted benefited new and average expected below the quarter EBITDA on-boarded product in segment’s launches platforms, segment and last revenue the customers ophthalmic growth of discussed from driven respiratory are components. Organic the

is of products. result pandemic, general a demand there As for the COVID-XX increase in respiratory a

and drive segments, our continues provide segment that strong also the The OSD development Oral across in each revenue revenue technology we recorded expected XX% Oral from In commercial cycle XX% fiscal Delivery, to into Specialty XX% XXXX, segment XXXX Softgel both tablet and both development fully molecule pipeline across dissolving development reported end-market revenue which small our have disclose the for quarter contribution $X.XX Zydis insight respiratory ophthalmic In billion, to of order addition benefited to our and fiscal a In long-cycle year. which the additional to includes products the demand and to our revenue all current from is strong large of long-term the business, future platform. in Biologics compared and our fiscal in we of development XXXX. represents Technologies, long is and growth.

to revenue total our development introductions we of contributed disclosures addition from new XXX approximately as the NPIs as $XX in In quarterly of revenue XXXX, introduced XXXX. these new well revenue, which provide products product also number the million fiscal current in of year. We fiscal in

and these As cannot our and control directional a reminder, the metrics them. do indicators not the of products we are of ultimate success since commercial predict sales only marketing these of business we

our Supply segment the posted X% prior million flat over year of fourth Now, and Services XX, on of $XX.X or as quarter Slide EBITDA Clinical shown the decline. of revenue million segment $XX

our some the growth was business. our the distribution the in to of the fourth stages backlog customers. was quarter forward quarter, accelerated In in partly we services impacted the and the work packaging due and pandemic storage As for burn pandemic disruption but trials noted offset by fourth early pulled by as clinical saw COVID-XX of quarter, storage the businesses, last the this distribution from

pandemic the costs elevated segments, also margins. CSS other to related impacted the with As

XX% book-to-bill $XXX March quarter, quarter during The The XX, reported fourth net XX. our CSS million wins segment segment the As of ratio trailing business a $XXX the of increase new compared was remained the June up $XXX backlog million XX-month X.Xx. segment’s X% year. of prior at at for to fourth the XXXX, million, from

for new clinical more year levels experienced demand to candidates. this related and therapy calendar trials lockdowns following services clinical We are vaccine global addition normal towards of seeing a supply return COVID-XX our in to earlier

As fiscal a growth segment the in result, ‘XX. we CSS expect resume to

growth it region contributor in capability in trial clinical not Japan base over Pharmaceuticals’ clinical our Takeda Asia-Pac is XXXX, noteworthy X to will the July facility and packaging as time. acquisition to CSS customer it expected for Shiga, builds our of Teva be a add in Although the growth

EBITDA Moving EBITDA the fourth fourth XX.X% a share to including increased On diluted the company-wide in Slide or on ‘XX. income organic XX%, net million, diluted quarter XX.X% to of in to EBITDA can shows year XX, our or of a diluted ago. a $X.XX million in diluted income adjusted capital fourth the $XXX.X increased XX% income $X.XX XXXX fiscal million quarter basis, including income revenue fiscal increased compared of quarter XX% adjusted organic fiscal adjusted net adjusted XX, compared or $XXX.X EBITDA to that fourth of Fiscal $XXX.X $XXX.X EBITDA XXXX. net Slide quarter XX.X% or XX related allocation priorities. to XX%, see and fourth of million or ‘XX. adjusted million adjusted compared Slide On XXXX constant net of our in adjusted you XX% revenue currency $XXX.X was per per XXXX per ratios fourth our adjusted was share quarter reported to fiscal of XX.X% or to our XXXX. On constant million share fiscal adjusted of currency revenue $X.XX per debt share XXXX. quarter compared revenue to compared fiscal basis, Fiscal increased $XXX.X compared XX% to $X.XX

under a the sheet John As organic quarter, credit pandemic made our end offering option, again in greenshoe activity. of the early since of added was of in After common million mentioned we we fourth $XXX revolving the proceeds earlier, sheet. our for our balance net had balance further to purposes, M&A of we remainder underwriter generating the abundance future our the $XXX facility. call, which general of proceeds to growth million caution including corporate The funding $XX through added exercised million its used possible proceeds, the We plans and a in raised our repay to June. last days million of borrowings $XXX net stock

Our was the cash end March million at and ‘XX. $XXX XX $XXX equivalents at and on fiscal to June cash of XX compared balance million $XXX million

growing $X cash adjusted lower equivalents to a the end XXXX. ratio turn our compared X.Xx today, of fiscal are at and June to at X.Xx XX, drove equity our cash the EBITDA net and March The than of our at over As leverage XX, June full down billion. X.Xx XXXX offering and

we As target X.Xx. to discussed, previous are our compared John lowering target net our long-term to leverage of X.Xx

representing to fiscal contributions, $XXX of build of our Moving on within segment. capability for in XX% XXXX, particularly was our out revenue levels customer service approximately double our our expenditures as the million, roughly total and before CapEx we Biologics capacity spending historical offerings, capital

high as $XXX mitigation be lower the increase plans supply mitigation. range other levels expenditures years at our approximately expect capital supply year. $XXX CapEx as of for as capital to the is working chain plans. and growth midpoint In total as organic roughly despite expected guidance of free new our mitigation X expect the of flow cash next efforts spending We we related supply fiscal million flow or the to a we be percentage elevated to year-on-year revenue of continue and more efforts, increase XXXX, XX% levels. the excess CapEx regarding fiscal flow XXXX, In to chain in result remain expansion headwinds XXXX, offset precautions previous our was historical today much revenue. approximately we providing Free cash such COVID-XX EBITDA XXXX than again to continued a $XX expected pandemic of XX% to in million our fiscal fiscal related which negative risk levels are million. programs, accelerated plans or cash for related level for chains, inventory in CapEx is cost our CapEx million than from those due of a the in reassigned and fiscal be was XXXX Free including in of our $XXX increased generated

investor I made of regarding our categories. some expenditures, interest that composition fall the Given quarter, want I repeat generally our general in to capital CapEx comments into last which three

X% manufacturing. revenue to roughly rigorous every maintain for the First, to X% of meet facilities requirements regulatory and to spent our year GMP

basket we confidence meet demand. long-term our be of demand, customer to and engaged of Second, build will regarding capacity expected portion based development on new programs careful insights expected that capacity a high consideration of with our substantial

When anticipated of contributions the take-or-pay risks own and do the arrangements not a offset typically pharmaceutical single speculatively require we to do do, product we Finally, invest we of our and associated development product. the meet protect due not any for mix a capital interest generally capital deploy with natural individual in attrition to to product. needs launches, programs, but we our single inherent customer

Now, turn The to on XXXX our fiscal elements. underlying outlook for following financial assumptions outlined as we our guidance Slide the include XX.

no to its change external business. the of our major First, the COVID-XX effects and assume current status on pandemic we

of not assuming any regulatory our or COVID-XX candidates will approval. are we get customers’ FDA vaccine Second, that other

take-or-pay from below revenue executed However, we guidance. effect products that volume commercial at so arrangements, already of or take-or-pay all is any into factored of would are the approved including the be levels

X revenue is of percentage to Third, revenue from year. points represent pre-existing for projected approximately our acquisitions projected growth the

weighted be from the first EBITDA adjusted in X. quarters is on that the expect Regarding back of remember January two to continue inorganic considered acquired revenue only Fourth, since revenue, with fiscal work the past revenue and heavily Anagni half BMS and year. years, as only more for to towards Anagni we we

However, therapy in the revenue programs of current XXXX somewhat materialize to fiscal will fiscal vaccine given for related COVID-XX year. and pronounced to less expect the forecast in half candidates the this be first that

compared revenue After billion compared ranges the XXXX. working to to revenue of other this executed take-or-pay of growth the in products in $X.X introduced have well would in regarding the work the agreements that due year segment. business of space for to attribute our the these as we approximately account the we COVID-XX amount in into on. past future factoring estimated same revenue of to to pandemic, our XX% account, course assumptions taking the Finally, years X uncertainty after for full COVID-XX COVID-XX response percentage as parts loss of range the been in billion, increased year placed by uncertainty likely we COVID-XX representing to expect related distribution fiscal We $X.XX revenue against of growth such as XX% are revenue including the pandemic, the expanded the points to CSS X

range million, to growth XX% to we $XXX For of fiscal to adjusted EBITDA, representing XX% XXXX. a full $XXX year expect of million compared

to representing We expect to XXXX. compared income $XXX of million $XXX of net fiscal growth full XX.X% adjusted year million,

A counts shares of count diluted range weighted common average This our with fully will XXX be terms. fiscal all as accordance basis the were converted on if preferred a to to in convertible Series also for our XXX projection We their expect share shares XXXX million million shares. in

open effective consolidated our call expect and concludes now XX% we this for the We XX% tax our and remarks would rate be year. to for questions. between like the fiscal prepared to Operator,

Operator

question Daniel first today UBS. from [Operator Thank Instructions] from line And comes of you. Brennan the our

open. Your is line

Daniel Brennan

is of congrats then for things maybe Thank of quarter as there I the us in what’s side question hoping in was the lot was I the math within exciting. you a the managing separate baked Biologics? know fiscal end guess from discussed is implicit a I you Biologics what the Thanks – your I strong for a right points haven’t to I impact guide equation. of from COVID. you. five the think you really and Great. Could seven you sense just to said at maybe – on guide because yet hoping my guys you in – but done give out ‘XX and fiscal Wetteny here, I question on focus could the out. ‘XX can going from you related your And on that, about and we you obviously could what to get also that you’re substance from in But are here Thank months transition with. also commercial through us that not in mentioned from how any drug as then XXX successful of you. programs to impact think COVID to on well COVID any side programs coming about, – as do over about you some discussions be? baking these are begin base data impact programs, bigger that the and side way business? we think discussed, and the vaccines. in that development to the from how And are thinking think those? we walk like the I in drug could product you maybe And as

Wetteny Joseph

And as for both have even prepared would Sure, patients. business. men and our John cash positioned the posted sheet, of fiscal made And plan growth and proud both commentary our say we’ve we well just quality and we during covered for further to very are throughout growth working here, Dan. operations really and solid and that diligently Look, ‘XX results organically record I improvements that our we we fiscal products for and of pleased and inorganically results our customers in are incredibly position services women first delivering and the with XXXX. the on I Catalent balance support our

of prepared terms the In a at a level, overall terms of your laid provide the is and out both reminder, of question, in as company won’t in as so guidance the commentary. we’ve will your you segments, question, focal to give by of here, terms segment know the as since specific particularly of it’s past. done the in point guidance little just we What I bit do presentation color give Biologics, as but consistently far how go which we’ve in

at significant business, the entire for posted clearly growth the Looking year. fiscal

programs, the we significant therefore the laid significant cell have fourth the we segments, would COVID-XX way that year nonetheless, business, line being including programs therapy the fiscal organic guidance businesses laid alluded gene that of business Those that talked Biologics to set a would portion growth for respect base the a quarter-to-quarter. of commentary. say, the therefore our with and within in of Biologics would driving concentrated ones, from which we’ve XX% the business, we’ve would today. during are have, the across substantial signed and growth growth variability lead healthy COVID-XX I all our Just given development programs we’ve John health therapy out But some XXXX, which the delivered as just I more programs to contributing although is, have, the business quarter. significant into our four programs, prepared segment, excluding larger top about our of Biologics underlying on growth the The business. reminder, to the a expect, with to in would coming out say, tailwind be our leading We

positioned, specific need COVID-XX contracts both again that those programs regardless successful is what approval our of programs. part substance drug to are into guidance which well excluding to with especially does in the whether for happens potential clarify, go levels product not and programs of it is COVID-XX our factors from amounts perspective? current one programs are won’t There I but not our is: that guidance I say, the programs It for guidance when within approved. your question So, segment, the wanted but they is of fiscal factoring take-or-pay for any our regulatory a commercially in drug any year include

equal be further upside Should clearly, we have all – above else of is the volume being or take-or-pay, to take-or-pay there is depending – that of business. there no if for volumes so, on come or timing adjustment approval would the and volumes would discussed, the and lower than an commercial of And are to at through that guidance. have such our the the and then approval a approval the that potential approval would the require, course should if what demand the across

question program make I if to – And there successful just successful point on that. that’s so want in one is around a your clarifying of terms

Daniel Brennan

great. Thank Okay, guys. you,

Operator

the comes of And next line JPMorgan. from question Peterson from our Tycho

line is open. Your

Tycho Peterson

thanks. Hey,

bypassing the how COVID, would any in scale programs. the opportunity, follow-up to involved just vaccine in going the Another up? that of particular dynamic the extent vaccine FDA on am for on the is wondering you some straight X Phase I about programs of obviously, manage EUA to talking those are terms you of with

Wetteny Joseph

X it’s work others for being their dependent work the this we are doing would programs are on or pursued the more FDA that large really various companies whether sponsors. we regulatory regulatory I the the engaged with of mean, pathway on is The are I with John working with highlighted are that’s really various, we our are something say agencies, X, sponsors Look, Yes. around and with, the is world.

comes. Europe our I rigor necessarily same we with to would So, the to that on say be clock that. comment in of every the is and and well with when position a terms we are as product if ready that in U.S. both quality What to capacity in working resources manufacturer and that around to do as won’t – up execute that the time we in ramping deliver

Tycho Peterson

cases? Softgel, to also two services. that then demand you follow-ups and just through the on Thanks. up, COVID maybe reflected quick could last in comp, and by am on surge with why as slower up back for fall another see recovery? some And and I the that’s pick growth wondering distribution wouldn’t And guiding kind guidance, flu products. of but quarter, a trials the CSS I extent extent storage you are then on am wondering to back what season flattish consumer pick Wetteny, clinical then of CSS about in what carrying wave talked to there

Wetteny Joseph

Yes.

at So beginning we in so of did and year, non-Softgel within last some fiscal Softgel the there reminded segments just Oral Technology as our elements and are that we segment.

with We business are, very first growth the of in the all, pleased ‘XX. fiscal posted

organic X% Softgel growth. Softgel rather and – Oral our business reminder, As a Technologies delivered

in to X% Our long-term expectation for is X% business to the the be range.

So, the up first I prior year. comparison against some SOT thing relatively difficult in is would say,

our growth which in for headwinds year and of what the the but to look the reminder prepared as cough be for into ended in are far of some fall, factored will in commentary X% today reflected we the a posted this this our are anticipating seeing the again is what expect all that guidance to long-term cold expectations some we distancing, current we and lighter for the throughout the little we social terms segment, X% business. well have we that’s you that’s see. Again, which described as year bit to overall to year just out would actually as that here terms of and extent of what goes, season we for company. etcetera, were is that expect how than laid in execute And we already we In expected related perhaps terms above would we normally what as the

on levels line to pandemic And of various third the we We actually that locations, in get double-digit work, for in of distribution work at more a I the the for execution that reversal say, drive fourth although customers larger would a anticipated are are of products normal COVID-XX at in commentary. is that particularly the the yet. quite the quarter. pre-pandemic alluded we the the CSS, lockdowns our towards fiscal for quarter. as levels saw segment And work of onset business doing prepared ended the quarter top patients. we the better some bit fourth the not organic we last as also in on from as and starting clinics we benefiting some business anticipated trend saw of said for call, the than out growth accelerated the see they programs of to For to into John

this book-to-bill also positioned we the future our growth in etcetera, are are and backlog recorded given growth of business seeing you say is the to segment the would we return year in wins fiscal So, signings that in segment. new and well terms saw ratios, for business and from a this have as I we

Tycho Peterson

thank Okay, you.

Operator

line Windley Jefferies. of from comes Our next question Dave the from

Your line is open.

Dave Windley

look then COVID putting have as related am additional you’re stockpiling the this we the your those kind government programs you’ve I of whether about morning? the you much you capacity like? clarify might question, do three on if morning on secondly, thanks. quarter. it sounds Hi, in the the congrats you activity, Wetteny, Maybe wondering the facilities related vaccine have you the in on a a in could large as to CapEx think great that take-or-pay highlighted would roughly point Good Bloomington, support two-parter as – beyond should more like against capacity arrangements, what and – orders your And Thanks. do – a so capacity broader to paralleling

Wetteny Joseph

Dave. Sure,

customers. have These I correlation overall reflecting all, any wouldn’t a we approach. we talk of our contracts, although but derive specific are contracts First necessarily won’t specific with – ones, about government to a the directly stockpiling draw

otherwise And to deployments for are production those therefore, for in into accordingly. contracts that receive make and we entered our return of up As volumes ensure certain either we that take-or-pay I minimum do have capacity we redirected earmarked we customers sure have have mentioned and want to terms or make accelerated capital so. sure ramping certain that would resources deployment, approach capital we for a we to arrangements protect say those from would our

and late have we that all, the just first COVID-vaccine those on of company, the segments so, customers are have our commitments that able commitments. your which what development recently that launched And capacity we Biologics we’re – terms whether of with around across To we’re There additional in we of part have working we’re alluding some to in of we programs. programs been sure sure to question of our that programs across on X,XXX – capacity; fees. the have the all are have to not are to commercial deliver make to those make elsewhere but latter that

those John so our non-COVID As the detail on that or do we Biologics gene alluded pipeline more any we accordingly. in be otherwise, again, there position dialog recently related made be approved but coming not we’ve be to that we or that our, in in of of should weeks, base active to are deliver still contracted to, sure the programs, are will for therapy, also XXX but capital, to that either that if have if customers the in obviously, or Board in the our including which will has capacity with business, programs able out to additional are also only on, commitments we make

when, deliver it for throughout sure certainly, So, can’t to or working that capacity necessarily exactly we are patients. and who we we business our potentially customers make predict the may it’s But what to – happen. segments have

Dave Windley

you. thank Okay,

Operator

Our from Blair. next question from of John William comes Kreger line the

Your open. line is

John Kreger

some you and comments the got? your some the you just Wetteny, you ‘XX What around fiscal back margin have clarify margins of go is in segments? puts longer Hey, of outlook and EBITDA the given for made Thanks. and could Biologics Thanks. takes term

Wetteny Joseph

segment, the in just are are margin Biologics the repeat fiscal but won’t expectation overall future. see. ‘XX of that terms specifics for to our what for look themes my within expectations When points margins I again, which just the year, So, of and we margins the segment three main a you’re and clarify give peer a for how will for going segment in fiscal to I into going back given terms there at ended, ‘XX

First, margins we for the year overall declined particularly deploying in our, made. are in the from acquisitions expanding as and we that segment the have

acquisition within our we As the expectations, onset, years. at our therapy is expected cell be the margin first said to in dilutive few

clearly We expected margin and also partly fiscal our important beyond. Anagni year in dilutive, but strategically to to Biologics, drive acquisition, well-positioned which growth the is be and in

so, those the long-term, right the believe And we business. for were moves

the you to parse to we not as significantly, out of and the CapEx impact will, you in employees out ramping be build in if the that will the ahead on that business highly – skilled to that mention if but are needed not volumes our Therapy expansion to our of So, only also be frontloaded, are they added on. Gene across execute segment is Biologics up particular and capacity suites, executing able

that So, an that those moves of making business. overall margins impact all deliberate the on had are we are

seeing the would we the at component Biologics, that’s on basis look our and increase were start execution as larger largely to out say separate negative in you execute If are about points in across and the to commercial business, we of due I organic business that margins sourcing programs. to programs, slightly XX tune

base to to our that to margins else this we the up very production, that materials being on wrap into to sourcing at services the buy that and so answer manufacturing question. will and as of are see I all component behalf do And for high get before go the customers we we expectations long-term business I equal additive

basis we including so to And at to services impact about in component component perform of – you our the XXX you sourcing. points XXX base excluding that business, basis segment the extended of excluding Biologics look and points acquisitions actually at if the the look expansion if sourcing, tune XXX margins

those in both are see potential production we for again, component sourcing, expanded equal described, points be as that single-digit which Biologics in programs, element revenue COVID-XX picture go volume sourcing I base is XXX it potentially for both was in what organically. being fiscal and well will come its we EBITDA component else just with base margin large additive our commercial masking the we margin are clearly to believe ‘XX, what the more high like as any as the occurred which margins actually yet all business that as negative forward, again we anticipating adding an So, will over – is overall which basis looked

revenues, what pleased So, healthy picture. this – is convey. the underneath business, and the the its we are fill/finish, margin and deliver very margins Long-term, complex again have long-term advantage to sterile execution will and masking albeit services the mid-XXs additional the take of the we That’s with a front for continue what are or given can our Biologics that’s opportunity trying business nature core premier otherwise component we our business in expectation to very that the a that assets for range. to whether we XX% sustain is on in sourcing

John Kreger

That’s helpful. Thank you.

Operator

Avendano from from the Bank Juan next our And of America. line of comes question

line is open. Your

Juan Avendano

on answer capacity appreciate Hi, a much as My as possible. quantitative thank question you. would is and I

so And fill/finish anticipated year? what the are what total ongoing? doses your excluding across capacity in fill/finish last many How And make second, capacity that your that ramp-up is that I so, by fiscal capacity you to XXXX are taking of place And Bloomington expansions interested right Bloomington am and now? did total in and you was capacity the fill/finish expansions the Anagni, ‘XX? have including activities end dose anticipate year the in that is run-rate

John Chiminski

said First an – level say over since I Catalent our XXXX terms in were of that as the part range. period we we initially in fill/finish won’t is of as capacity, of the as October in what we Bloomington, give Juan, now where time, particular, you of XX% of the would increase all, specificity mentioned of the have the terms have we Bloomington I capacity, that of have in whereas and seen family you utilization

well and have more utilization time that to all yet We to over of have period, so volumes way a demands capacity in programs. underway but shifts that access accelerated been actually that also, the potential meet a for and added half year are COVID-XX we order XX% around gone even have commercial to and that we announced expansions operations for to our capacity, ago, more the

that making with continue customers’ our demands the So, we that the are the with will how protect take-or-pay very progress that business also expansion we is our on albeit are executing, meet arrangements, again to various pleased investment.

comfortable is, to So, without fill/finish would giving working I capacity, we the have commitments Biologics. say you with we are growth well we those that as the programs, the specific pipeline pipeline are our see that broadly as confident to made ability meet in and terms to of overall development that with in demands, and of we what with customers our have we respect

prepared we in one the Anagni Catalent Let of XXXX. added talk commentary our facility, me just fiscal the to was add which – a more couple about middle of In things.

pharma, we the buy of facilities, as it margins lower – other expect amount customers at which but to happening initially, of but facility. France that And go we COVID-XX last Limoges, product also position to fair facility. not programs the from to business of we add is for the typically announced we we capacity customers As but And your us pursue in you with now range we a why working respect not as specifically, know, with that’s fill/finish which to the continue be said when additional comes facility are well to into addition the Biologics. exclusively on least, we capacity for clearly,

monitor Biologics, add continue capacity we both the meet and to the across you we to from centers throughout as are to of pipeline customer as as will premier our given excellence of expansion assets premier demands our see, to well way we three here have have we our on our So plans can market on that demand customers. sure to in position demand broader make capitalize

Juan Avendano

Alright. Thank you.

Operator

from And Stephens. from the our Jacob next Johnson comes of line question

Your line is open.

Jacob Johnson

the Hey, Maybe front, Paragon would going therapy things the any But cell on on non-COVID lot largely today. of thanks. a on Catalent. on and other capabilities clearly at are Congrats exciting gene any you particular, XQ, or are strong focused think AAV that there on you Paragon an thoughts I guess, could MaSTherCell? for to vectors to or organically could like either add in add lentivirus capabilities you be bolt-on maybe plasmids this sort and of these area M&A? and

John Chiminski

Yes.

So, thanks, John Jacob, here.

just CDMO us I approved to by very going the MaSTherCell, are to therapy assets So are have literally first in that incredible Paragon Paragon this am of giving first entry proud into acquired premier FDA for we all, And facility, say really some we where manufacturing area, commercial to be and really in very want gene fast-growing miracles. the I we an say manufacturing. our

platform. there, we the lentivirus of standpoint from to us also a the therapy, terrific is preferred Catalent say, as to Paragon mentioned I into capabilities we lentivirus platforms as vaccine a are know, platform. So, clearly, has on cell – they been – AAV a I you business MaSTherCell the the ability is think for of for development multiple would and our and now have forward that But in many move get of acquisition position. grow I for focused more because using, that in years before

our to source you going development at capability own see our component, between So know, important. clearly Also, cell a DNA as doing synergies looking manufacturing, and therapy the we material and therapy that our business. be plasmid this gene very the for closely business again, key therapy. to raw for we is for in-house and also to gene develop And that and work ability have is control capability our

envisions gene include viral has science in expanding just further vectors therapy general, technology Catalent would in our I roadmap very plasmid areas So, and cell and a the that say, other to capabilities robust and also include DNA.

Jacob Johnson

Great. Thanks, John.

Operator

Stanley. question the comes Morgan Our from Goldwasser next of Ricky from line

Your line is open.

Ricky Goldwasser

more And good how of the it’s when fiscal associated of us of you high associated considering about the with guide that the of or there Can Hi, that high-end there and than low morning. in broader are vaccine think pay the to range, cadence is Yes. with upside and historically, What and you we low-end about kind guidance of no factoring year guidance think end play. visibility optionality versus ‘XX? guidance? should there earnings into is is just the the that we the

Wetteny Joseph

Wetteny this Ricky, is here.

of the fluid. But we out I cadence, terms remains typical. is half. We still we a wider core first really terms came in with range. Clearly, think to of the an the question In in of alluded range than second which your half, active pandemic, are

As issues in put any to commentary, to supply somewhat a have terms mitigate but we number to have to around prepared in and continuing actions we execute John plan of of across chain, our alluded cautious potential those. place in remain his

The I tend are to make increasing which to this two would saw, revenue point other as bit points, more overall an Ricky, revenues our compared more on base, you drive commercial percentage of – is, variability a the revenue. development little

included Biologics are and in have segment. we do we particularly Certainly, program from consideration, take-or-pay. perspective into discussed, as the purely here So, the take COVID-XX we that what a

Catalent of So, certain the above XXXX, level our in just to – that range ability are we have line certainty well discussed. coming remind year growth range a we of fiscal top was range organic around but a that we within X% also to that here, results deliver X% for for clearly, guidance gives off the have the you, XX%, overall our highlighted to

tougher In So, XX%, and be ‘XX in we pleased would are that against say, again were comps. on we growth solid XX% where between to I you in fiscal off, depending fall the range. regard, very position deliver on to

say, piece overall COVID-XX-related I within that range, correlated. higher a range. a X% the have point range for the reason than necessarily for that we any wide we they not to are other, would anymore, range probability X% reason. in I would the So, versus hence No say, highlighted

going are to the in potential SOT so the that any – in are regard. health. end high anywhere range, terms any market may We of look point last doesn’t COVID-XX correlate necessary of supply the company the in impact it’s we the giving of of demand the overall to specific will not estimation the range marketplace. X,XXX those to very discussed terms across across have of that is, I So, make, we Ricky, fall segment end in products The consumer we in high terms

posted see range which discussed. to fiscal we long-term will have are above well We where little bit the the that ‘XX of in compared slowdown business

factored So, the at how go will so we are we in year, continue is we guidance. the as forward. look to still early those things all year yet the executing of into And are fiscal

Ricky Goldwasser

should we, can when are quantities potential about I or follow-up, the just Thank global? you have at manufacturers should vaccine, as saying, opportunity to relates it you. guys, And U.S. the think the we what one think about look with we

Wetteny Joseph

look, we say, as highlighted, the we also are work would Europe I sort the covered, that for doing announcements we highlighted those we of put our across the John and that on. specifically haven’t board, U.S. have plus companies and any sponsors, ones

in As across global and the those nature XX a well both be the will side side reminder, on signed as therapy on vaccine we as programs those.

doing in for We U.S., US, U.S. work Europe for and outside as and Europe are as outside the both the Europe. in well

programs. those each global, every customer of and So, but some in larger numbers nature, global I necessarily the look not across would more as for at

Ricky Goldwasser

you. Thank

Operator

of from Our from next Donald KeyBanc. question comes Hooker line the

Your open. line is

Donald Hooker

of simple lot ask here. provided one. sort I A Great. will a of information

but your here, comments. hit have notes keeping You this, may just scribbling up down with

target, took debt In debt down terms your Xx. it to like the target of looks you

have of ratio job a target? net the thinking sort that that You behind debt taking done on you Can bit debt elaborate good reducing down. a ratio

Wetteny Joseph

look, their Don, to Sure. investors levels. have debt listened look in and certainly, on our we capital terms of structure

we the fiscal think X.Xx this the equity successful of the maturity company as today. of pleased the set to We very and with have I ability and we positioned execute well as X.Xx. a have on year grow well net also at with continue as in opportunities the raises organic target are leverage long-term to we of position reflection sit past as it’s inorganic ratio a been that to

about so long to execute able have to be long-term As on that period. a past, as timeframe, visibility look within getting XX within in certain leverage inorganic to acquisitions of strategic the which position we to into that course, would an back do take months to XX typically be we we up to – as months in target to

as acquisitions. to on that target we the firepower for can long-term we from strategic at up temporarily positioned our But are any that see to will from target where to Clearly, down So, certainly X.Xx, potential X.Xxto the to organic we today be but pick well pleased what able implies inorganic ones on opportunities, execute X.Xx. you to execute long-term that well. sit take

Donald Hooker

Thank you.

Operator

comes of Dodge Our Sean from next from question the Capital RBC Markets. line

is line Your open.

Sean Dodge

then am the bonuses? I the like to see expect elevated investments you the Wetteny, to facilities then Maybe the some costs not thinking those vaccines, but can of to making are ramp if any thoughts we right of and back operate cost should you unwind? margins, And magnitude necessarily the going and more Good things now put incurring Thanks. to COVID-related begin morning. to are when manufacturing You Thank you around on the or the bookends

Wetteny Joseph

$X put time bonuses the the be might from John quarter, an to we as COVID-XX. of won’t about thank in second this this bonus round bounds our Look, We thank and around in had million last both first incremental million and the employees. of to cost round you you Sure. what $X rest alluded now around network specific the

social are approaches adjustments made work have our We and to employees that them. and safe Certainly, have shifts to our ensure have between those distancing applications.

direction of opposite across Additional too. that execution are the network an buying are there in items we have PPE But well. would our work some go and that using I say the as impact

example, cost less you For lower welfare means too. health in entertainment, see and travel And for may some cost instances, and of those. lower

examples. it’s direction. would all in as one are well have the would cost, just bonuses. you say fall would some Thank in is the I say piece one So, I some going there net You gave quantified not also offsets but rest as I we the

Sean Dodge

helpful. Thank That’s Got it. you.

Operator

Research. comes of question line next the from from Nephron Jack Meehan Our

is open. line Your

Jack Meehan

years to a in Thank what you. Good work COVID-XX. morning. compress trying I near-term, the of be had are two just quarters. follow-ups you usually would In on few

to I contracted? the investment the rate also you the at then have these efficiency way scaling projects. you longer-term, that just So, of lot margins impact how what about up which have And are was of and the these we have at curious some feel you in vaccines support accelerated a might on

targets. long-term that trajectory? your the raised recently the just how longer-term some of you of about the wondering revenue near I But what in seeing are and feel durability mean contribution was know the I So, might you term you for

Wetteny Joseph

programs large length to margins. first it’s a volumes mind, that your development necessarily we billion to engaging Look, runs, themselves of clearly, are etcetera, the implications. it Jack, also that we we to activities throughput. depending various keep at in I naturally XX year lend the COVID-XX are extent of positive point would say, not, question, any positive doses level of there would currently that The that program, program, deliver so have get large we a of, Sure. But where Catalent longer runs inherently of are have in whether part in same scale operating manufacturing where efficiencies, don’t or the terms are, capacity, the have we effects etcetera., on our over bigger and on the can

be balance, in those terms beneficial these whole I a approvals – of of lot high again, in regard. nuanced certainly could like drive anything that are short certain space in most operating versus but feel period are work would if there level we a this time, So, doing programs the But throughput. of throughput on think, of in that

we course, we expectations investments, have they In company, it on of Biologics. terms will across free highlighted have across both well will of acceleration also flows will be etcetera., a growth deliver positioned the impact and the that cash the those, have but of to have we –

long-term. for reminder, the terms As rate growth a in is our long-term company, being of with X% to the X% Biologics in mid-teens

given of to terms company targets taking especially But not have certainly, a in long-term we doing, we we in fiscal that of those we at looking as time us ‘XX. we posting type it kind numbers that our assets which given well target X% And baseline sort tailwind have long-term. of positioned of positioned investments related programs pandemic, at the that programs; the of are while healthy have that another on particular, is to are a seen to are is we the other go-to we above. here And the You in development programs a deliver we COVID-XX, supported above our COVID-XX or are long-term still is look targets X,XXX that with while midst related X-year have, numbers very and that deliver those in base and the the believe business to to well be would X%, we making. pipeline, are

Operator

like call would back to over Chiminski I now John remarks. to hand for closing the

John Chiminski

our to questions your operator Thanks, call. for the points. thanks by time and close to join a everyone you of few would like for important I taking reminding

to First, the internal forecast fiscal with across revenue in double-digit revenue another us let year investments our transformative double-digit also XXXX acquisitions in company, growth to fiscal combined we of and last the years the made positioned us deliver strategic growth XXXX. growth over organic organic several

accelerate to increased build continuing customer reassign our acquired out world-class assets offerings have COVID-XX meet Next, top the CapEx and the some needs. premier these priority. Biologics of led integrating has business pandemic and demand for we our and to a remain patient to these and The us plans

of the in our adjusted segment XXXX to XXXX. revenue fiscal expect to Biologics one-third EBITDA continue approximately Biologics our versus from segment approximately revenue and strong up revenues growth target of make We XX% and fiscal in total

doses produce responsibility or customers or treatment thousands us for deliver, their be to or maintain of Thank we who across culture all It never have and all the been billion live supply lives to better out to continuity have that Finally, the to those business and our people every and live manufacture starts on more it you. hard our carry counting great patient-first potential we has important. products healthier for products. our year employees COVID-XX with XX our develop, worked mission vaccine help XX,XXX

Operator

Ladies and for gentlemen, participating. this concludes conference today’s Thank call. you

You may now disconnect.

Catalent (CTLT) 31 Aug 202020 Q4 Earnings call transcript