Global contract development and manufacturing organization (CDMO) Catalent recently completed a debt refinancing transaction that will provide greater financial flexibility to invest in scaling capacity in areas where it is seeing strong customer demand, including biologics and oral drug manufacturing. 

Key areas where Catalent is investing in capacity include its Zydis ODT (orally disintegrating tablet) platform and its expansion of domestic biologics manufacturing capabilities. 

“Our Zydis platform continues to experience strong customer demand, and we are expanding capacity to support future growth,” said Matti Masanovich, senior vice president and chief financial officer at Catalent. “We are also investing in additional biologics manufacturing capabilities, including larger-scale bioreactor capacity at our Madison site in response to customer demand. In addition, with the onshoring U.S. tailwind, we are expanding U.S. capacity to capture this demand.” 

Those investments come as Catalent sees growth opportunities across biologics, advanced drug delivery technologies and peptide-based therapies, including GLP-1s, said Masanovich. 

“At the same time, patients and healthcare providers increasingly value dosage forms that improve convenience, adherence, and outcomes,” he added. 

Catalent has also recently invested in new capabilities across its manufacturing network highlighted by the launch of Qai, an enterprise artificial intelligence (AI) tool designed to support quality management system processes across its manufacturing network. The tool is designed to analyze Catalent’s enterprise data to accelerate root cause identification and corrective and preventive action development for quality processes such as deviations and complaints.  

Greater investment flexibility  

Announced in late August, the debt refinancing includes a new $4.1 billion equivalent, seven-year Term Loan B facility and a $600 million revolving credit facility, replacing the company’s existing Term Loan B. 

“The transaction significantly improves our financial profile by reducing our borrowing costs, strengthening our liquidity position and providing additional flexibility to support our strategic priorities and long-term growth,” said Masanovich.  

The refinancing is expected to reduce Catalent’s annual interest expense by approximately $100 million and lower its blended cost of debt, providing greater flexibility for the company to invest in the technologies, infrastructure, and capabilities needed for its customers, the company said. 

Catalent’s new $600 million revolving credit facility is supported by a syndicate of 10 global institutional banks, broadening the company’s banking relationships and strengthening access to capital. Following completion of the transaction, Catalent has approximately $1.1 billion of available liquidity, including cash on hand and access to its revolving credit facility.

“This transaction is another example of the progress Catalent continues to make as we build a stronger company for the future,” said Alessandro Maselli, president and CEO of Catalent. “The improved capital structure gives us even greater ability to invest in our people, capabilities, network and customer partnerships. Most importantly, it supports our mission to develop, manufacture and supply products that help people live better and healthier lives.”

The refinancing comes nearly two years since Novo Holdings completed its landmark $16.5 billion acquisition of Catalent, one of the world’s largest CDMOs. Soon after, Novo Holdings said it planned to double Catalent’s size over five years.  

“We expect the impact of this strengthened financial position to be demonstrated through continued expansion of high-demand capabilities, increased capacity across our network, and the successful progression of customer programs from development through commercialization,” said Masanovich. “These investments support our long-term growth objectives and are expected to drive meaningful revenue and earnings growth over the coming years.” 

However, Catalent’s growth trajectory hasn’t been without its challenges. The CDMO, which operates nearly 40 sites globally, made the decision earlier this year to close its cell therapy center in Gosselies, Belgium amid a reported drop in production. In August 2025, Catalent also confirmed workforce reductions at its Baltimore, Maryland gene therapy facility.  

While recent setbacks have hit its cell and gene therapy business, the company says fundamentals are strong with ongoing plans to support customers in the development of genetic disease treatments.

Maselli told Pharma Manufacturing in a 2025 interview that due to Catalent’s investment and capital expenditures over the last five years, the CDMO has the capabilities and capacity to “take advantage of the opportunities in biologics and other new modalities” including cell and gene therapies.