Introduction:
Novo Holdings, the asset manager of the foundation that controls Novo Nordisk, has announced its acquisition of contract development and manufacturing organization (CDMO) Catalent for $16.5 billion. This purchase will enable Novo Nordisk to meet the growing demand for its obesity drugs Wegovy® and diabetes drug Ozempic®, as well as recoup two-thirds of the expense by selling three of Catalent’s fill-finish sites to Novo Nordisk for $11 billion upfront.
- Novo Holdings will acquire CDMO Catalent for $16.5 billion and sell three of Catalent’s fill-finish sites to Novo Nordisk for $11 billion upfront.
- The acquisition will help Novo Nordisk meet growing demand for its obesity drugs Wegovy® and diabetes drug Ozempic®.
- The three sites that Catalent is selling to Novo Nordisk are part of Catalent’s network of more than 50 sites and have ongoing collaborations with the company.
- Catalent agreed to the sale following a review of its business, strategy, and operations by a committee of its board, which added four new independent directors supported by activist investor Elliott Investment Management.
- The acquisition is expected to close by the end of 2024, subject to customary closing conditions.
Conclusion:
Novo Holdings’ acquisition of Catalent will strengthen Novo Nordisk’s manufacturing capabilities and allow the company to meet the increasing demand for its obesity and diabetes drugs. The sale of three Catalent sites to Novo Nordisk will help recoup a significant portion of the acquisition cost. This strategic move demonstrates Novo Nordisk’s commitment to expanding its market presence and meeting the healthcare needs of patients worldwide.
