Yahoo Finance Here’s How Novo Holdings’ Catalent (CTLT) Acquisition Affects Laughing Water Capital
Laughing Water Capital, an investment management company, released its first-quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, investment in the fund returned 8.4% after all fees and expenses compared to 10.6% and 5.2% returns for the SP500TR and R2000 during the quarter, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Laughing Water Capital featured stocks like Catalent, Inc. (NYSE:CTLT) in its Q1 2024 investor letter. Headquartered in Somerset, New Jersey, Catalent, Inc. (NYSE:CTLT) develops and manufactures solutions for drug, protein-based biologics, cell, and gene therapies, and consumer health products. On May 2, 2024, Catalent, Inc. (NYSE:CTLT) stock closed at $56.34 per share. One-month return of Catalent, Inc. (NYSE:CTLT) was -0.72%, and its shares gained 17.99% of their value over the last 52 weeks. Catalent, Inc. (NYSE:CTLT) has a market capitalization of $10.196 billion.
Laughing Water Capital stated the following regarding Catalent, Inc. (NYSE:CTLT) in its first quarter 2024 investor letter:
"Starting with the recent positive industry developments, in early February it was announced that Novo Holdings would be purchasing Catalent, Inc. (NYSE:CTLT), a publicly traded CDMO, for $16.5B. Novo Holdings would then sell three fill-finish sites to Novo Nordisk for $11 billion. The fill-finish assets are the real prize here, as Novo Nordisk is the manufacturer of blockbuster weight loss drugs Ozempic and Wegovy, and there simply is not enough global fill-finish capacity to meet the demand for these drugs.
This transaction is (potentially) hugely beneficial to our investments in both LFCR and CDMO. First, Novo Nordisk has said that they would honor all existing fill-finish contracts with Catalent’s customers. However, they have not said what would happen after those contracts run their course. The silence here is deafening for the industry because the presumption is that existing customers will be forced to find another provider for their fill-finish needs at a time that excess capacity is somewhere between nonexistent and hard to find. As Lifecore is one of the few players that has spare capacity, I suspect that the phone at Lifecore is ringing off the hook…” (Click here to read the full text)
A team of scientists in a lab studying drugs and biologics to help improve consumer health.
Catalent, Inc. (NYSE:CTLT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Catalent, Inc. (NYSE:CTLT) at the end of the fourth quarter which was 37 in the previous quarter.
We previously discussed Catalent, Inc. (NYSE:CTLT) in another article, where we shared the list of hot stocks to invest in according to Wall Street analysts. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
