Catalent´s tumble: is it time to cash out

Abstract

The following paper represents an Equity Research report on Catalent Inc. The below section is the second part of a two-part series and focuses on the CDMO market, and a relative valuation of Catalent. The aim of this part is to provide an in-depth analysis the pharmaceutical CDMO market, its competitive environment and key market players to facilitate the final relative valuation using comparable companies and comparable transactions. The market analysis includes an overview of the key drivers of the overall healthcare market, the underlying biologics and pharma and consumer health market, and our expectations of future projections of those. Lastly, a final implied share price based on relative valuation methods is derived. Further, an analysis of the ESG performance and further risk factors of Catalent’s operations is explored.