CTLT
#Thank you.
So when we think about that, <UNK>, we would generally target approximately 70% to 80% of our adjusted net income figure resulting in free cash flow.
No, it should be consistent.
Well, it's the underlying reorganization of how we manage the business internally that prompted it.
And so, during the course of the year, the businesses that now report in the DDS segment are under one business leader within Catalent ---+ that's Barry Littlejohns is the President of the DDS division.
And during the course of the year, he has been afforded more responsibility for those units.
So it just makes complete sense, that we would then reorganize the reporting structure that way.
I actually think this is a very nice improvement ---+ not just because it's the way we manage the business, but because now we have more evenly sized segments.
You'll recall the prior structure had one relatively large segment and two pretty small ones.
Now we've got two segments that are approximately the same size, and the clinical services segment being a service-oriented short-cycle segment on its own, that's now easy to see.
So I think that it's a good development, not just because it's how we manage the business, but I think it provides better insight for people that are following the Company, or trying to follow the Company.
Sure, <UNK>.
So we talked about the capital expenditure project to expand our capacity in biologics.
We put, just under $30 million into the Madison facility just a couple of years ago.
That capacity is more or less already called for.
And the investment that we'll make, will enable us to continue to accommodate the strong organic growth that we see within the biologic business, so that's good.
I expect to see increasing asset utilization in the DDS segment, specifically within the MRT business.
The Winchester expansion which we made over the last couple of years, we will be able to grow into that over the next ---+ probably the next three to five years.
So we should see good margin expansion opportunity because of that.
And then, I think the rest of the network is pretty, pretty balanced.
Thanks, <UNK>.
So I'll start with the first part, <UNK>.
So for the first three quarters of the year, you're quite correct, that we saw volume declines in some of our higher margin product in the controlled release segment.
That started to turn around in the fourth quarter, and more normal order patterns returned for those products during the quarter, that gave us confidence when we were putting together the FY17 guidance, that we would see order patterns FY17, that more paralleled FY15 and years prior, and patient consumption for those medications.
Because part of ---+ a significant part of the reasons why we were seeing lower volume in the first three quarters of FY16 were supply chain issues, and our customers had sufficient inventory of the products we were making.
Those inventory stores have been worked down, and we expect in FY17, that our manufactured volumes will more closely parallel patient consumption of the product.
And we started to see ---+ and the confidence that we have that will be the case, is the actual volumes that we manufactured in Q4.
And in terms of the growth rate year-on-year, across the entire MRT portfolio was down about 5% to 7% year-on-year, and we expect in 2017, that growth will rebound in the MRT business.
It will look more like our long-term expectation of 4% to 6%.
What's good about that is, once again, these are relatively higher margin products in the controlled release segment, so the bottom line impact should be good.
That's correct.
That should be towards the higher end of our 4% to 6% expectation, maybe even a little bit beyond the high end.
Thanks, <UNK>.
Thank you, operator.
In conclusion, we're pleased with the favorable trends in our base business, and a return to year-over-year growth in revenue and EBITDA in the fourth quarter.
We look forward to carrying this momentum into FY17, as we turn the page on Beinheim, and remain well-positioned to capitalize on our industry-leading partnerships.
Thank you.
