Novo Holdings to Acquire Catalent
Novo Nordisk's parent company, Novo Holdings, has announced a buyout offer to acquire Catalent, a contract drug manufacturer, for $16.5 billion. This significant development in the pharmaceutical industry aims to increase the supply of Wegovy, a weight-loss drug developed by Novo Nordisk. The deal is currently subject to antitrust approval and will undoubtedly impact the pharmaceutical industry.
The $16.5 billion acquisition is an all-cash transaction that includes the purchase of three 'fill-finish' sites from Catalent for $11 billion by Novo Nordisk. Catalent is known for filling and packaging injection pens for Novo Nordisk's popular weight-loss drug, Wegovy. The acquisition is expected to have a low single-digit negative impact on operating profit growth for Novo Nordisk in 2024 and 2025. The deal is expected to close by the end of the year, subject to shareholder and regulatory approvals.
Boosting Wegovy Supply
This deal could help boost the supply of the highly popular weight loss injection Wegovy and diabetes shot Ozempic. Catalent is the main supplier of fill-finish work for Novo Nordisk's Wegovy. Novo Nordisk will then buy three of Catalent's manufacturing sites from Novo Holdings for $11 billion. The acquisition of the plants and the broader deal to buy Catalent is expected to close at the end of 2024.
The deal has the backing of activist investor Elliott Investment Management, which has a stake in Catalent. This support further solidifies the anticipated successful completion of the acquisition. The Bloomington site, part of Catalent global, has been directly bought by Novo Nordisk, making the town a part of the Novo Nordisk family.
Increasing Wegovy Supply
As part of the deal, Novo Nordisk plans to purchase three manufacturing sites, located in Anagni, Italy, Brussels, Belgium, and Bloomington, Indiana in the U.S., to increase the supply of Wegovy. The sites are fill-finish sites planned to be used to increase the supply of Wegovy. Due to extreme demand, Novo Nordisk has increased the supply of the low-dose (starter) version of Wegovy and halted all marketing for the drug. The popularity of these drugs has led to a profit increase for Novo Nordisk.