Catalent (NYSE:CTLT) has announced a collaboration agreement with activist investor Elliott Investment Management, resulting in the addition of four new directors and an expanded board with a total of 16 members. During premarket trading, Catalent’s stock rose by 3.4%.
In addition, Catalent has formed a new Strategic and Operational Review Committee to conduct a thorough examination of the company’s business, strategy, and operations. This initiative was revealed in a statement released by the company on Tuesday.
The appointment of the four new directors includes Steven Barg, who serves as the global head of engagement at Elliott, as well as Frank D’Amelio, Stephanie Okey, and Michelle Ryan. Furthermore, John Greisch, a current Catalent director, has been appointed as the executive chairman of the board, also taking the role of chair of the business review committee.
The board of Catalent now consists of 16 directors, with 13 of them meeting the company’s director independence standards.
This announcement follows a report from Reuters on Monday stating that Catalent was close to reaching an agreement with activist investor Elliott. Over the past year, the contract drug maker has experienced a significant decrease in share value, with a decline of nearly 55%.
In a statement, Elliott Senior Portfolio Manager Marc Steinberg expressed his belief that these changes, including board additions, John Greisch’s appointment, and the creation of the Strategic and Operational Review Committee, are vital steps towards maximizing Catalent’s long-term value.
A recent article in The Wall Street Journal revealed that Elliott has acquired a substantial stake in Catalent and intends to advocate for board changes. Catalent has faced various challenges, including the departure of its finance chief, financial warnings, delays in quarterly earnings reports, and issues with its manufacturing facilities.
Catalent has also reported its Q4 results earlier today.
Learn More about Catalent