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Catalent (CTLT) Inks Deal for New & Effective Drug Delivery

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Catalent (CTLT - Free Report) announced that it entered a licensing agreement with India-based biotech, Bhami Research Laboratory ("BRL"), to help enable the subcutaneous delivery of high-concentration biologic therapies. BRL has expertise in protein and peptide drug delivery. Its goal is to enhance the delivery of biologics therapeutics through its proprietary high-concentration subcutaneous protein delivery technology.

Per Catalent, small volume and low viscosity biotherapeutics delivered subcutaneously have superior patient benefits over traditional intravenous injections. Per the terms of the agreement, CTLT can evaluate BRL’s formulation technology to reduce viscosity and deliver high-concentration biologic products. The financial details of the deal are not available.

Significance of the Deal

The deal will allow Catalent to develop a novel patented formulation that may be evaluated for enabling the delivery of high-concentration therapies by reducing viscosity. BRL’s technology can be applied to a wide range of monoclonal antibodies and fusion proteins, which may lead to superior subcutaneous delivery of drugs compared to traditional intravenous injections. The novel technology will likely provide improved access to healthcare, reduce need for hospitalization and overall treatment costs. It will also provide the opportunity to employ new delivery technologies such as auto-injectors.

Successful development drugs under the agreement can be integrated into Catalent’s formulation and manufacturing services at scale. The deal is likely to help Catalent with a new and effective drug-delivery system for its customers.

Recent Activities

Earlier this month, Catalent announced its successful formulation design and clinical-phase manufacturing collaboration with Grünenthal for an orally dosed small molecule in the latter’s pipeline. Per the deal, CTLT is expected to provide integrated development platforms to facilitate trials and accelerate early development. The idea is to aid Grünenthal in progressing its research and development portfolio.

Per Catalent’s management, innovators demand has shortened drug development timeframes. The company’s offerings of a number of integrated solutions can ensure that programs can be accelerated to, and through, clinical phases as quickly and safely as possible. These solutions also provide design and delivery technology support to give molecules the utmost chance of success.

Last month, Catalent reported dismal top and bottom-line performances for the second quarter of fiscal 2023. It also reported a decline in both segments’ revenues. However, better-than-expected revenues and a year-over-year improvement in the Pharma and Consumer Health segment at CER are impressive. The expansion of the gross margin bodes well.

Zacks Rank & Stocks to Consider

Catalent currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Becton, Dickinson and Company (BDX - Free Report) , Henry Schein (HSIC - Free Report) and The Cooper Companies (COO - Free Report) .

Becton, Dickinson and Company, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth of 7.8%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.47%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BDX’s shares have declined 9.9% against the industry’s 0.7% growth in the past six months.

Henry Schein, carrying a Zacks Rank #2 at present, has an estimated long-term growth of 8.1%. Its earnings surpassed estimates in three of the trailing four quarters and met the same once, the average surprise being 2.97%.

HSIC’s shares have gained 7.8% compared with the industry’s 0.8% growth in the past six months.

The Cooper Companies, carrying a Zacks Rank #2 at present, has an estimated long-term growth of 11%. Its earnings missed estimates in three of the trailing four quarters and beat the same once, the average negative surprise being 1.82%.

COO’s shares have gained 11.3% compared with the industry’s 0.8% growth over the past six months.

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