It seems (NYSE: CTLT) was apparently the reason why a key drug was refused approval by the Food and Drug Administration (FDA).

According to a media report from a leading financial news agency, this is what likely happened. On this disquieting development, investors traded out of the company's stock on Wednesday. It ended the day more than 3% lower, while the bellwether S 500 index more or less traded sideways.

That morning, Bloomberg published an article stating that difficulties at a Catalent factory were the sole reason it denied its approval. The party applying for it was biotech Regeneron Pharmaceuticals (NASDAQ: REGN), and the drug is a stronger formulation of its previously approved Eylea. As its brand name implies, Eylea's main indication is for an eye disorder, in this case wet macular degeneration.

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Source Fool.com