(Reuters) -Catalent beat Wall Street's estimates for first-quarter revenue on Wednesday, as the contract drug manufacturer showed signs of improvement across its struggling pharmaceuticals and biologics businesses.
Shares of the company rose nearly 6% in premarket trade as its adjusted net loss was also smaller than expected, indicating early signs of recovery on the back of changes to its board.
Catalent began a strategic review in August and added new members to its board after a settlement with activist investor Elliott Investment Management.
Problems had been piling up for the Somerset, New Jersey-based company, which manufactures drugs, vaccines and gene therapies, as it struggled with production challenges and regulatory inspections at three of its key facilities.
Catalent plays a vital role in the production of Danish drugmaker Novo Nordisk's
The company's biologics segment, which provides clients with development and manufacturing services for gene therapies and pre-filled syringes and vials, recorded revenue of $447 million, beating analysts' average estimate of $417 million, according to LSEG data.
Its pharmaceutical and consumer health segment posted sales of $535 million, also beating the estimate of $515 million.
Catalent had said on Monday it would delay its first-quarter filing with the U.S. securities regulator due to a goodwill impairment charge of about $700 million related to acquisitions in its consumer health and biomodalities unit, but would file preliminary results on Wednesday.
The company recorded a net loss of $715 million for the quarter, which includes the charge.
On an adjusted basis, Catalent recorded a net loss of $19 million, or 10 cents per share, smaller than the estimated 14-cents-per-share loss.
Preliminary revenue for the first quarter fell 4%, to $982 million, but also beat analysts' average estimate of $939.14 million.
(Reporting by Sriparna Roy and Leroy Leo in Bengaluru; Editing by Pooja Desai)
