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Catalent (CTLT) Boosts Portfolio Via Launch of GPEx Lightning

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Catalent, Inc. CTLT recently introduced GPEx Lightning, its next-generation cell line development technology. GPEx Lightning combines novel technologies, which include a gene insertion technology, to further reduce the time period for drug substance development by up to three months unlike previous timelines.

For investors’ note, the technology leverages Catalent’s proven GPEx expression platform in a glutamine synthase knock-out Chinese hamster ovary cell line system.

The launch is expected to help Catalent significantly strengthen its foothold in the global cell line development space. The business is a component of the company’s broader Biologics segment.

Significance of the Launch

The latest GPEx Lightning platform blends multiple advanced engineering technologies into a single process. This offers high-yielding cell lines while reducing development steps, thereby helping customers save six to 12 weeks on their programs’ timelines. Per management, GPEx Lightning builds on the company’s proven platform to enable accelerated timelines with the highest level of consistency and quality.

In fact, Catalent’s proprietary GPEx suite of technologies has been proven in 13 commercial products to date. This apart, there are above 125 ongoing clinical trials with therapeutic candidates being developed utilizing said technology. The advantages of applying GPEx technology include early feasibility studies as well as clinical and commercial-scale manufacturing.

The portfolio of GPEx technologies, including original GPEx, GPEx Boost, and now GPEx Lightning, will allow customers to customize a cell line engineering approach to effectively serve their specific program requirements.

Industry Prospects

Per a report by Research and Markets, the global market for cell line development was estimated to be $4.7 billion in 2020, and is projected to reach a size of $10.7 billion by 2027 at a CAGR of 12.3%. Factors like technological advancements in biologics and pharmaceutical industries, growing vaccine production, and increasing demand for biosimilars and monoclonal antibodies are expected to drive the market.

Given the market potential, the latest launch is expected to significantly boost Catalent’s business worldwide.

Recent Developments

Of late, Catalent has witnessed a slew of developments across its businesses.

The company, this month, announced that it will commence the first phase of a planned $100-million expansion program at its facility in Anagni, Italy, to add biologics drug substance manufacturing capabilities. This expansion is aimed at supporting the growing European market demand for biologics manufacture and supply.

In the same month, Catalent inked a development agreement with JOS Pharmaceuticals, according to which the former will commence a viability study for the potential development of a licensed cannabidiol product to be used as an anesthetic premedication. Per the agreement terms, the study will be using Catalent’s proprietary Zydis orally disintegrating tablet technology.

The company, in June, reached an agreement to acquire RheinCell Therapeutics GmbH, which is expected to close before the end of 2021, subject to customary conditions.

Price Performance

Shares of the company have gained 39.7% in the past year compared with the S&P 500's 38.3% rise. The industry lost 10.1% in the said time frame.

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Zacks Investment Research

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Zacks Rank & Other Key Picks

Currently, Catalent flaunts a Zacks Rank #1 (Strong Buy).

A few other top-ranked stocks from the broader medical space are Veeva Systems Inc. VEEV, AMN Healthcare Services Inc AMN and Henry Schein, Inc. HSIC.

Veeva Systems’ long-term earnings growth rate is estimated at 15.8%. The company presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare’s long-term earnings growth rate is estimated at 6.5%. It currently carries a Zacks Rank #2 (Buy).

Henry Schein’s long-term earnings growth rate is estimated at 11.2%. It currently carries a Zacks Rank #2.

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Henry Schein, Inc. (HSIC) : Free Stock Analysis Report

AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report

Veeva Systems Inc. (VEEV) : Free Stock Analysis Report

Catalent, Inc. (CTLT) : Free Stock Analysis Report

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