Home News Novo Nordisk Parent Buys Catalent in $16.5 Billion All-Cash Deal

Novo Nordisk Parent Buys Catalent in $16.5 Billion All-Cash Deal

by SuperiorInvest

KEY TAKEAWAYS

  • Catalent shares soar on news that Novo Holdings, the majority owner of Novo Nordisk, is acquiring the syringe maker for $16.5 billion in cash.
  • The deal represents a 16.5% premium to Catalent’s share price ahead of Friday’s announcement.
  • The acquisition expands Novo Nordisk’s production capacity and supply flexibility, particularly for its weight-loss drug Wegovy.

Shares of syringe maker Catalent (CTLT) soared 10% in early trading after it signed a deal to sell it to majority shareholder Novo Nordisk (NVO) for $16.5 billion.

Novo Holdings will purchase all of Catalent’s outstanding shares for $63.5 per share in an all-cash transaction. The price translates to a 16.5% premium to Catalent’s share price on February 2, 2024, the last trading day before the announcement.

Based in Somerset, New Jersey, Catalent is the primary manufacturer responsible for filling and packaging injectable pens for Novo Nordisk’s popular weight-loss drug Wegovy.

Once the deal closes, Novo Nordisk, which also makes diabetes drug Ozempic, will buy three of Catalent’s “fill and finish” sites from Novo Holdings for $11 billion in a debt transaction, it said. the company in a separate statement. The sites are located in Italy, Belgium and the United States, and have ongoing collaborations with Novo Nordisk.

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

Novo Nordisk said the purchase of the three sites may have a “low single-digit negative impact on operating profit growth in both 2024 and 2025.”

Novo Holdings and Catalent said they expect their deal to close by the end of the year, subject to regulatory and shareholder approvals.

Catalent rose 9.87% to $59.91 as of 10:27 a.m. ET Monday following the news, although it is down 11% in the past year. Novo Nordisk American Depositary Receipts (ADRs) rose 2.89%.

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