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Catalent: financial woes due to inefficiencies at facilities, including Bloomington

By Ethan Sandweiss

Posted April 18, 2023

catalent.jpg

Catalent does not expect to recover production levels in Bloomington until after June 30. (Catalent Pharma)

Catalent employees in Bloomington received word from their company Friday that “higher-than-expected costs” and “productivity challenges” at facilities including theirs would damage the company’s earnings.  

Chief Financial Officer Thomas Castellano left Catalent the day prior to the announcement and share prices dropped 26 percent immediately following its release. On Monday, bio-tech company Danaher Corp. shelved its planned takeover of Catalent.   

Bloomington was mentioned specifically in a press statement by the company for failing to meet expected production, which Catalent attributed to required “enhancements to its operational and engineering controls” after inspections earlier this year.  

Catalent also said it has already made management and operational changes in Bloomington to address the problem.  

Last November, Catalent cut 400 jobs in Bloomington and that summer eliminated 204 temporary positions. The facility had experienced rapid growth during the pandemic when its workers produced and distributed the Johnson & Johnson COVID-19 vaccine.  

Catalent said it doesn’t expect to make up for lost production in Bloomington during this fiscal year. The news release didn’t say whether more layoffs are expected.  

Catalent could not be reached for comment in time for publication. 

This story will be updated.

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