By Dominic Chopping and Chris Wack
Novo Holdings, the controlling shareholder of Danish pharmaceutical Novo Nordisk that makes weight-loss drug Wegovy, is buying drug manufacturer Catalent in an all-cash transaction that values the target at $16.5 billion, including debt.
Novo Holdings said Monday that it will buy New York-listed Catalent for $63.50 a share in cash, 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 of Friday.
In connection with the deal, Novo Nordisk has moved to boost its production capacity by agreeing to buy three of Catalent’s manufacturing sites from Novo Holdings for $11 billion.
The company said the acquisition of the three fill-finish sites will allow it to reach more people living with diabetes and obesity with current and future treatments, enabling an expansion of its manufacturing capacity while providing future optionality and flexibility for Novo Nordisk’s existing supply network.
The popularity of Wegovy has seen the company restrict supply while it scrambles to increase stocks. In recent months, it has outlined plans to invest more than $6 billion to increase capacity. Last month, Novo Nordisk began gradually increasing supplies of lower-dose strengths, having limited supply in the U.S. since May to safeguard access for current patients.
The three manufacturing sites are specialized in the sterile filling of drugs and located in Italy, Belgium and the U.S. The sites employ more than 3,000 people and all have current collaborations with Novo Nordisk.
The merger is expected to close toward the end of 2024.
Following the closing of the merger, Catalent shares will no longer trade on the New York Stock Exchange, and it will become a private company.
Write to Dominic Chopping at [email protected] and to Chris Wack at [email protected].
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