Novo Nordisk, struggling to meet weight-loss drug demand, to buy facilities in three-way deal

By Steve Goldstein

Novo Holdings to buy Catalent and then sell three facilities to Novo Nordisk for $11 billion

The controlling shareholder of weight-loss drug maker Novo Nordisk on Monday said it's buying a provider of drug manufacturing for $16.5 billion, and will then sell three key facilities to Europe's largest company by market cap.

Novo Holdings, the controlling shareholder of Novo Nordisk (NVO), said it's buying Catalent (CTLT) for $16.5 billion including assumed debt, or $63.50 per Catalent share, a 16.5% premium to Friday's close.

Catalent stock rose 12% in premarket trade to $60.95. Novo Nordisk shares in Copenhagen (DK:NOVO.B) rose 2%.

The deal is a 39% premium to Catalent's close before it announced a strategic review.

The deal will see Novo sell three fill-finish sites to Novo Nordisk shortly after the deal closes, for $11 billion. Novo Nordisk has been struggling to meet demand for its popular injectable weight-loss drugs.

Novo Nordisk said all three sites - in Anagni, Italy; Brussels, and Bloomington, Ind. - have ongoing relationships with the Danish drugmaker and employ more than 3,000 people.

"It enables an expansion of the manufacturing capacity at scale and speed while providing future optionality and flexibility for Novo Nordisk's existing supply network. The acquisition is expected to gradually increase Novo Nordisk's filling capacity from 2026 and onwards," said the Danish company.

Catalent has more than 50 sites globally.

Catalent investor Elliott Investment Management said it supports the deal. The activist investor ranks as the no. 11 shareholder of Catalent, with a historical cost per share of $46.80, according to FactSet.

Novo Holdings, also the controlling shareholder of Novozymes (DK:NZYM.B), had assets of EUR108 billion at the end of 2022.

-Steve Goldstein

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02-05-24 0711ET

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