Catalent Inc (NYSE:CTLT) stock rose 2.22% (As on June 13, 11:53:12 AM UTC-4, Source: Google Finance) after the company posted third-quarter revenue ahead of estimates after a long delay caused by persistent production issues at its major facilities. The company reported a larger-than-expected quarterly loss and cut its annual revenue forecast for the second time, but strength in its biologics unit drove quarterly sales past tempered Wall Street estimates. The company had delayed its quarterly results report thrice in less than a month, hit by production snags at three of its key facilities, including in Brussels, where it does filling work for Novo Nordisk’s obesity drug Wegovy. The issues drove up expenses and further hampered the company’s cost-cutting efforts that were already under pressure from regulatory inspections and subsequent corrective actions. However, the company expects strong operational performance at the Maryland site, where Catalant produces raw material for mRNA-based therapies and gene therapies.

Last month, Catalent promised to take corrective steps and said it had changed the financial directors at the facilities facing the biggest challenges, besides naming a new interim CFO in April.

CTLT in the third quarter of FY 23 has reported the adjusted loss per share of 9 cents, missing the analysts’ estimates for the adjusted loss per share of 3 cents, according to IBES data from Refinitiv. The company had reported 19 percent fall in the adjusted revenue to $1.04 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $952.7 million. The company will also amend its 2022 results filing with a $26 million deduction caused by a revenue recognition error at its Bloomington plant. Third quarter fiscal 2023 Adjusted EBITDA was $105 million, or 10% of net revenue, compared to $339 million, or 27% of net revenue, in the third quarter a year ago. This represents a decrease of 69% as reported and a decrease of 68% on a constant-currency basis, compared to the fiscal 2022 period. Adjusted Net Loss(1) was $(17) million, or $(0.09) per diluted share, compared to Adjusted Net Income of $188 million, or $1.04 per diluted share, in the third quarter a year ago. As of March 31, 2023, Catalent had $4.85 billion in total debt, and $4.60 billion in total debt net of cash, cash equivalents, and marketable securities, compared to $4.38 billion in total net debt as of December 31, 2022.

The contract drug manufacturer cut its fiscal 2024 revenue forecast to a range of $4.23 billion to $4.33 billion.