What happened

The struggles of contract drugmaker Catalent (CTLT 0.33%) continued on Monday, leading to a big sell-off in the company's stock. Investors were heavily discouraged by their company's latest update, and in response traded the shares down by almost 26% on the day. 

So what

That morning, Catalent divulged that it is delaying the publication of its third quarter of fiscal 2023 results, and cancelling the planned conference call that would have accompanied it. Both were slated to take place the following day (Tuesday, May 9).

In its press release on the matter, Catalent said that the delay stems from its discovery of certain noncash adjustments connected with its operations in Bloomington, Indiana. It added that it needs more time to review these and that it will file its quarterly report with the Securities and Exchange Commission (SEC) next Monday, May 15. 

The adjustments will contribute to an unpleasant side effect for the specialty healthcare company, namely worse-than-expected financial results for the third quarter. Catalent said that due to operational and productivity issues, plus those adjustments, it anticipates it will "significantly reduce" revenue and non-GAAP (generally accepted accounting principles) adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for full-year fiscal 2023.

Now what

Both line items should be affected by more than $400 million. On top of that, Catalent said that its income statement and its balance sheet would be affected by a goodwill impairment of over $200 million. That charge is mainly connected to Bettera Wellness, a company it acquired toward the end of 2021.