Novo Holdings to Acquire Catalent in $16.5 Billion Cash Deal

by Warren Seah

Novo Holdings, the majority shareholder of Danish pharmaceutical company Novo Nordisk, has announced its plan to acquire pharma peer Catalent in an all-cash transaction. The deal values Catalent at $16.5 billion, including debt.

Under the agreement, Novo Holdings will purchase New York-listed Catalent for $63.50 per share in cash. This represents a premium of 16.5% to Catalent’s closing price on Friday and a 47.5% premium to the 60-day volume-weighted average price.

As part of the acquisition, Novo Nordisk will also acquire three manufacturing sites from Catalent for $11 billion. The deal aims to enhance Novo Nordisk’s production capacity and expand its reach to more individuals suffering from diabetes and obesity.

The three fill-finish sites, located in Italy, Belgium, and the U.S., specialize in the sterile filling of drugs. Currently, these sites have ongoing collaborations with Novo Nordisk and employ over 3,000 people.

The demand for Novo Nordisk’s weight-loss drug, Wegovy, has surged, causing supply constraints. To address the increased demand, the company plans to invest over $6 billion in expanding its capacity. Novo Nordisk has recently started gradually increasing supplies of lower-dose strengths to ensure accessibility for existing patients.

The merger between Novo Holdings and Catalent is expected to be completed by the end of 2024. Following the merger, Catalent will become a private company and will no longer be traded on the New York Stock Exchange.

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