Novo Holdings to Acquire CDMO Catalent for $16.5B

Novo Holdings, the investment arm of Novo Nordisk’s parent foundation, has agreed to buy Catalent for $16.5 billion in cash.

Novo Holdings will pay $63.50 per share for Somerset, NJ-based Catalent, a 16.5% premium over the company’s Friday closing price.

Catalent is an important player in the contract development and manufacturing industry. The company is extensively involved in the production of Novo Nordisk’s best-selling obesity drug, Wegovy. As part of the transaction, Novo Holdings will sell three Catalent fill-finish locations and related assets to Novo Nordisk, including those in Italy, Belgium, and Bloomington, IN.

Novo Nordisk will pay $11 billion for the sites, which employ 3,000 people. According to the company, all three had previously collaborated with the drugmaker.

“The acquisition complements the significant investments we are already doing in active pharmaceutical ingredients facilities, and the sites will provide strategic flexibility to our existing supply network,” Lars Fruergaard Jørgensen, Novo Nordisk’s president, CEO.

Novo Holdings, based in Denmark and with North American headquarters in Plainsboro, NJ, announced the plan to increase manufacturing capacity as Novo Nordisk has struggled to meet demand for Wegovy and diabetic drug Ozempic.

Catalent’s sale comes months after it agreed with activist investor Elliott Investment Management to conduct a strategic review due to declining sales and difficulties at some of its major manufacturing facilities.

Novo Nordisk and Novo Holdings said the acquisition of the plants, as well as the larger transaction to buy Catalent, are expected to close by the end of 2024.