We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Catalent's (CTLT) New Deal to Utilize Its Zydis ODT Technology
Read MoreHide Full Article
Catalent, Inc. (CTLT - Free Report) recently executed a development and license agreement with Ethicann Pharmaceuticals Inc. to develop Ethicann’s clinical drug pipeline using its proprietary Zydis orally disintegrating tablet (ODT) technology. The financial details of the license agreement, however, have not been revealed.
The latest agreement is likely to significantly solidify Catalent’s Pharma Product Delivery business on a global scale.
Rationale Behind the Agreement
Zydis is a unique, freeze-dried, oral solid dosage form that disperses almost instantly in the mouth and does not need water. It also has a dispersion speed of around three seconds. Zydis is currently used in over 35 drugs approved in 60 countries.
Per the license terms, Catalent will look to develop Canadian/U.S. specialty pharmaceutical company Ethicann’s cannabidiol and tetrahydrocannabinol pharmaceutical products using its Zydis technology in clinical trials across a range of indications, including multiple sclerosis (MS) spasticity, chemotherapy-induced nausea and vomiting, chronic pain for cancer and epilepsy. The agreement follows a feasibility study that showed the Ethicann’s candidate to treat MS spasticity formulated with Zydis ODT was rapidly absorbed into the blood. This provides a therapeutic advantage by bypassing the liver, which removes 30-45% of cannabinoids absorbed through the stomach.
Per Catalent’s management, Zydis ODT can be used to rapidly administer therapeutic doses of active drugs. The company also looks forward to continue working with Ethicann and applying its expertise in developing, launching and supplying new differentiated therapies having the potential to improve patient care across a range of central nervous system indications.
Ethicann’s management believes that Zydis ODT delivery technology, when incorporated into its cannabinoid drugs, will likely provide competitive advantages in the marketplace and enhanced safety profiles.
Industry Prospects
Per a report by MarketResearch.com, the global ODT market was valued at $12388 million in 2020 and is anticipated to reach $27000 million by 2027 at a CAGR of approximately 11.7%. Factors like cost-effectiveness, easy usage, safer drug administration and rise in clinical trials are expected to drive the market.
Given the market potential, the latest license agreement seems to have been timed well.
Recent Agreements
This month, Catalent announced signing a commercial supply agreement with Sarepta Therapeutics, Inc. Per the agreement terms, Catalent would manufacture delandistrogene moxeparvovec (SRP-9001), Sarepta’s most advanced gene therapy candidate for the treatment of Duchenne muscular dystrophy. The agreement also structures how Catalent may support multiple gene therapy candidates in Sarepta’s pipeline for limb-girdle muscular dystrophy.
In November 2022, Catalent announced a new license agreement under which Catalent’s Redwood Bioscience subsidiary will grant Exelixis an exclusive license to three target programs with lead antibody and/or antibody-drug conjugate candidates.
Price Performance
Shares of Catalent have lost 54.7% in the past year compared with the industry’s 18.2% decline and the S&P 500's 15.7% fall.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Catalent carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
AMN Healthcare has lost 4.1% against the industry’s 24.5% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3%.
Cardinal Health has gained 44.8% against the industry’s 4.6% decline over the past year.
Merit Medical, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 21.7% against the industry’s 4.6% decline over the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Catalent's (CTLT) New Deal to Utilize Its Zydis ODT Technology
Catalent, Inc. (CTLT - Free Report) recently executed a development and license agreement with Ethicann Pharmaceuticals Inc. to develop Ethicann’s clinical drug pipeline using its proprietary Zydis orally disintegrating tablet (ODT) technology. The financial details of the license agreement, however, have not been revealed.
The latest agreement is likely to significantly solidify Catalent’s Pharma Product Delivery business on a global scale.
Rationale Behind the Agreement
Zydis is a unique, freeze-dried, oral solid dosage form that disperses almost instantly in the mouth and does not need water. It also has a dispersion speed of around three seconds. Zydis is currently used in over 35 drugs approved in 60 countries.
Per the license terms, Catalent will look to develop Canadian/U.S. specialty pharmaceutical company Ethicann’s cannabidiol and tetrahydrocannabinol pharmaceutical products using its Zydis technology in clinical trials across a range of indications, including multiple sclerosis (MS) spasticity, chemotherapy-induced nausea and vomiting, chronic pain for cancer and epilepsy. The agreement follows a feasibility study that showed the Ethicann’s candidate to treat MS spasticity formulated with Zydis ODT was rapidly absorbed into the blood. This provides a therapeutic advantage by bypassing the liver, which removes 30-45% of cannabinoids absorbed through the stomach.
Per Catalent’s management, Zydis ODT can be used to rapidly administer therapeutic doses of active drugs. The company also looks forward to continue working with Ethicann and applying its expertise in developing, launching and supplying new differentiated therapies having the potential to improve patient care across a range of central nervous system indications.
Ethicann’s management believes that Zydis ODT delivery technology, when incorporated into its cannabinoid drugs, will likely provide competitive advantages in the marketplace and enhanced safety profiles.
Industry Prospects
Per a report by MarketResearch.com, the global ODT market was valued at $12388 million in 2020 and is anticipated to reach $27000 million by 2027 at a CAGR of approximately 11.7%. Factors like cost-effectiveness, easy usage, safer drug administration and rise in clinical trials are expected to drive the market.
Given the market potential, the latest license agreement seems to have been timed well.
Recent Agreements
This month, Catalent announced signing a commercial supply agreement with Sarepta Therapeutics, Inc. Per the agreement terms, Catalent would manufacture delandistrogene moxeparvovec (SRP-9001), Sarepta’s most advanced gene therapy candidate for the treatment of Duchenne muscular dystrophy. The agreement also structures how Catalent may support multiple gene therapy candidates in Sarepta’s pipeline for limb-girdle muscular dystrophy.
In November 2022, Catalent announced a new license agreement under which Catalent’s Redwood Bioscience subsidiary will grant Exelixis an exclusive license to three target programs with lead antibody and/or antibody-drug conjugate candidates.
Price Performance
Shares of Catalent have lost 54.7% in the past year compared with the industry’s 18.2% decline and the S&P 500's 15.7% fall.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Catalent carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has lost 4.1% against the industry’s 24.5% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3%.
Cardinal Health has gained 44.8% against the industry’s 4.6% decline over the past year.
Merit Medical, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 21.7% against the industry’s 4.6% decline over the past year.