2023-08-29 07:50:39 ET
Catalent ( NYSE: CTLT ) said it entered into a cooperation agreement with activist investor Elliott Investment Management and will add four new directors, expanding its board to 16 members. Catalent rose 3.4% in premarket trading.
The contract drug maker also announced that its board established a new Strategic and Operational Review Committee to conduct a review of the company's business, strategy, and operations, the company said in a statement on Tuesday.
The four new board members include Steven Barg, global head of engagement at Elliott, Frank D’Amelio, Stephanie Okey, and Michelle Ryan. In addition, Catalent ( CTLT ) director John Greisch has been appointed executive chairman of the board and will also chair the business review committee.
Catalent’s ( CTLT ) board will consist of 16 directors, 13 of whom are independent under the company’s director independence standards.
The news comes after Reuters reported Monday that Catalent ( CTLT ) was close to reaching an agreement with activist Elliott after shares of the contract drug maker plunged almost 55% over the past year.
"We believe the changes announced today—including the new additions to the Board, the appointment of John Greisch as Executive Chair, and the creation of a Strategic and Operational Review Committee with a clear mandate to maximize the long-term value of the company—represent critical steps toward ensuring that Catalent reaches its full potential," Elliott Senior Portfolio Manager Marc Steinberg said in the statement.
The WSJ reported last month that Elliott took a significant stake i n the contract drug maker and plans to push for board changes.Catalent ( CTLT ) shares have plummeted 55% over the past year as it dealt with issues ranging from the exit of the finance chief, financial warnings, delays in its quarterly earnings report, and issues with its manufacturing facilities.
Catalent ( CTLT ) reported its Q4 results earlier on Tuesday.
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Catalent enters cooperation pact with activist Elliott, to conduct business review