2023-07-20 10:44:16 ET
Catalent ( NYSE: CTLT ) rose 2.5% amid a report that activist Elliott Investment Management has taken a significant stake in the contract drug maker and plans to push for board changes.
Elliott is pushing for changes in the company's board and has been talking to potential director candidates about joining a slate of nominees for a proxy contest, according to a WSJ report late Wednesday. The exact size of Elliott's stake wasn't known.
The report comes as Catalent ( CTLT ) shares have plunged 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.
"Put simply, we're a little surprised it took this long for an activist to surface here," RBC analyst Sean Dodge, who has an outperform rating and a $49 price target on Catalent ( CTLT ), wrote in a note on Wednesday.
"We see multiple directions Elliott could potentially take this in to unlock value, including changing the Board and/or management, M&A, LBO, and/or breaking it up," Dodge added.
Catalent ( CTLT ) has also been the subject of takeover speculation, including from Danaher ( DHR ), though Bloomberg reported in April that the life-sciences company was no longer considering an acquisition of the company.
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Catalent gains amid report of Elliott stake; RBC sees multiple paths for activist