Catalent stock jumps after cooperation agreement with activist investor Elliott Investment

Shares of Catalent Inc.
CTLT,
+1.67%
jumped 4.1% in premarket trading Tuesday, after the maker of products used by drug makers and consumer health companies announced an cooperation agreement with activist investor Elliott Investment Management LP, as it will appoint four new independent directors. The appointments include Steven Barg, global head of engagement at Elliott. In addition, Catalent said it has appointed John Greisch as executive chair of the board of directors, and has established a new strategic and operational review committee. In connection with Catalent’s initiatives, Elliott has agreed to “customary standstill, voting, confidentiality” and other provisions. “We are pleased to work collaboratively with Elliott, a highly engaged investor with deep experience in the healthcare space, and we welcome our new directors to the Catalent Board,” said Catalent Chief Executive Alessandro Masell. “The Company will continue to take decisive action to strengthen operational performance, enhance profitability, and create value for all shareholders and other stakeholders. We believe the actions announced today will advance Catalent’s positioning for long-term growth and success.” The stock has run up 23% over the past three months through Monday while the S&P 500
SPX,
+0.63%
has gained 5.4%.