After Bloomberg indicated that Danaher (DHR) has expressed takeover interest in Contract Drug Manufacturing Organization, or CDMO, Catalent (CTLT), Jefferies analyst David Windley noted that the average CDMO take-out valuation since Thermo Fisher’s (TMO) acquisition of Patheon in 2017 was skewed by five deals in the 40-60 times EBITDA range. However, if one excludes "those nosebleed valuations," the average has hovered around the 17 times that Thermo Fisher paid for Patheon and applying that multiple would value Catalent at just under $93 per share. The firm has Buy ratings on both Danaher and Catalent.
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Published first on TheFly
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