Contract drug manufacturer Catalent (CTLT:US) announced a series of strategic changes following a settlement with activist investor Elliott Investment Management. 

Most importantly, the company has appointed four new directors to its board and will initiate a strategic review process. Moreover, Catalent also reported its latest quarterly results.

Catalent stock initially dipped in response to the earnings news but rebounded during pre-market trading due to the news of the settlement with Elliott, confirming earlier reports from Reuters. 

Elliott is a significant investor in Catalent and has been actively engaging with the company behind the scenes for an extended period.

The agreement will see Catalent’s board expand to 16 members to accommodate four new directors from Elliott. Reuters also reported that Catalent will explore strategic options, including a potential sale.

“Our Board shares Elliott’s confidence in the long-term value creation potential of Catalent. We look forward to providing an update to the market on the work of and, ultimately, recommendations by the Strategic and Operational Review Committee following its review of the business,” said John Greisch, a new Executive Chair of the Board.

Catalent shares rose 3% on Tuesday.

The company sees full-year revenue at $4.4 billion, ahead of the consensus of $4.19 billion. For its fourth quarter, Catalent posted an adjusted EPS of $0.09 on revenue of $1.07 billion, which compares to the consensus for earnings of $0.11 on sales of $1.05 billion.

Congress members Ro Khanna and Daniel Goldman were trading CTLT shares in 2023.