CTLT Anticipates Boost From Demand for Injectable Weight-LossMain Highlights
1. Syringe maker Catalent suggested soaring demand for injectable weight-loss drugs could lead to sizable revenue gains, and shares surged.
2. The company said sales of its pre-filled syringes could increase more than five-fold because of the popularity of those drugs.
3. Catalent also released preliminary quarterly results, and revenue exceeded forecasts.
Syringe maker Catalent (NYSE: CTLT) said soaring demand for injectable weight-loss drugs could lead to big revenue gains, and shares surged over 11%.
The company indicated that it expected a majority of its current and upcoming production capacity for pre-filled syringes until fiscal year 2026 to soon be booked out.
Catalent syringes are used to deliver Novo Nordisk’s (NVO) Wegovy, a diabetes treatment that has been shown to help patients lose weight. Wegovy is in the class of drugs known as GLP-1, which also includes Novo Nordisk’s Ozempic and Eli Lilly’s (LLY) Mounjaro and Zepbound.
Catalent also reported preliminary first quarter fiscal 2024 revenue of $982 million, down 4% from a year ago but more than analysts’ estimates. The company announced on Monday it was delaying release of its quarterly statement because of a $700 million goodwill impairment charge
Technical Analysis
(NYSE: CTLT) is trading near the bottom of its 52-week range and below its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price lower, and the stock still appears to have downward momentum.
Catalent
CTLT Catalent Options Ahead of EarningsAnalyzing the options chain and the chart patterns of CTLT Catalent prior to the earnings report this week,
I would consider purchasing the 40usd strike price in the money Calls with
an expiration date of 2024-1-19,
for a premium of approximately $8.30.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Catalent about to close it's gap?Catalent - 30d expiry - We look to Sell a break of 65.98 (stop at 69.98)
We have a Gap open at 6.2. from 56.05 to 69.46.
The primary trend remains bearish.
A break of support at 66.44 should lead to a more aggressive move lower towards 55.00.
This stock has seen poor sales growth.
Our outlook is bearish.
Our profit targets will be 55.98 and 53.98
Resistance: 70.00 / 72.54 / 76.50
Support: 66.44 / 55.00 / 52.00
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Catalent Is about to beat earnings?Now I've been watching Catalent, since they partnered up with one of the stocks I hold for a COVID treatment. Novan. Doing a quick glance at CTLT I noticed a TA pattern known as a double bottom and with certain catalyst coming out, maybe its about to run up and leave this bearish trend.
News
-ER is in 14 days
-They have partnered up with Novan to design the injection of Novan's product that can treat/reduce spread of COVID by 90%, which comes out in Q3.
TA
As you can see the curve lines represents the two bottoms and the top with two white lines pointing at support points. Now note that this could be just a trading zone, yet we will get into the bullish argument.
-MACD a cross over is turning bullish
-RSI is rising, yet would need to break 52.47. Also if you want, you could say its already bullish on the RSI with a small error margin in TA.
-Resistance would be at 110.87, 114.67, and finally the high of 125-127
-Support is at 106.89 and 100.52.
-The emas aren't bad with it ending on top of the 50ema which leans bullish in the short term.
-VPVR levels are really high at where it closes today with the resistance in the VPVR at 113 and the support at 106-107
Final thoughts
It leans bullish if the Double Bottom pattarn plays out and could see it run up nicely on ER. This ER is Q2 for Catalant, so the COVID play will come out sometime after.
