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Catalent cutting 130 positions at Bloomington facility this week

Catalent

Just two years ago, the company had announced plans to expand in Bloomington and add 1,000 jobs by 2027. (Courtesy: Catalent/City of Bloomington)

Catalent started layoffs of 130 employees at its Bloomington location Wednesday, according to an announcement sent to employees.

The company expects to finish by Friday, according to the notice.

“As part of Catalent’s commitment to driving long-term sustainable growth, the Company has been focusing on increasing efficiencies and reducing costs across our business,” a Catalent spokesman said in a statement. “We are committed to treating those impacted with the utmost respect and supporting them in this transition."

The company had multiple rounds of position cuts through 2022 and 2023 at its Bloomington facility and at others across the country.

Read more: Catalent to layoff 400 workers

Just two years ago, the company had announced plans to expand in Bloomington and add 1,000 jobs by 2027.

Catalent and Moderna partnered in 2020 for production of the COVID-19 vaccine at its Bloomington site, which would include adding more staff to man a 24/7 production line through June 2023.

But the company hit road bumps last year with production quality noted in FDA investigations, which increased operation costs. The company also reported declines in demand for COVID-19 vaccines. 

Read more: Catalent accused of using shortcuts in COVID vaccine production

The company’s annual report for 2023 said it experienced revenue losses of $539 million that fiscal year.

On Catalent’s quarter 1 2024 earnings call held in back in November, Catalent’s Vice President and Chief Financial Officer, Matti Masanovich, said net revenue for the quarter was down 4 percent.

“This decline is primarily attributed to the significant reduction in COVID revenue of approximately $85 million in the quarter as well as a one-time $30 million licensing fee in the prior year,” he said.

Catalent’s 2024 second quarter fiscal results said its net revenue of $1.03 billion was down from the $1.15 billion reported in the second quarter last year.

Last month, the Danish investment group Novo Holdings announced it would acquire Catalent for $16.5 billion in cash. The pharmaceutical company it holds, Novo Nordisk, will directly purchase the Bloomington Catalent facility.

Read more: Novo Holds acquires Catalent

The company bought Catalent with plans to expand its fill-finish capacity for its weight-loss drug Wegovy. Employees at Bloomington’s site will transfer to Novo Nordisk, according to the company.

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