Catalent (NYSE: CTLT) increased by 8.8% after-hours trading after a report that activist investor Elliott Investment Management took a large stake in the contract drugmaker.
Elliott is pushing for changes to the company’s board and has spoken to potentials director candidates to join a slate of candidates for a proxy contest, according to a WSJ report, which cites people familiar with the matter. The exact size of Elliott’s stake was not known.
The report comes as shares of Catalent (CTLT) have fallen 55% in the past year on issues ranging from the exit of the chief financial officer, financial warnings, delays in its quarterly earnings report and problems with its manufacturing facilities.
Catalent (CTLT) has also been the subject of takeover speculation, including from Danaher (DHR), although Bloomberg reported in April that Danaher was no longer considering acquiring the company.
Catalent’s short interest (CTLT) is 6.3%.