Updated: Novo Holdings pays $16.5B to take Catalent private and sells three manufacturing sites to Novo Nordisk
Novo Holdings, the investment arm of Danish pharmaceutical company Novo Nordisk, has made a significant move by acquiring contract manufacturing organization (CMO) Catalent for $16.5 billion. As part of this transaction, Novo Nordisk will purchase three of Catalent's manufacturing sites located in Bloomington, Indiana; Brussels, Belgium; and Anagni, Italy, for $11 billion from Novo Holdings. These facilities will produce Novo Nordisk's blockbuster GLP-1 drugs, Wegovy and Ozempic, to address existing supply challenges for these products.
Some key points from the available information include:
- The acquisition of Catalent by Novo Holdings aims to complement Novo Nordisk's ongoing investments in active pharmaceutical ingredients facilities and to provide strategic flexibility to their existing supply network.
- The deal with Catalent is seen as a positive for the CDMO industry (contract development and manufacturing organizations), indicating a healthy interest in consolidation and M&A activity, as well as potential significant capital investment in CDMOs with sterile fill-finish and prefilled syringe capabilities.
- The acquired facilities will produce Novo Nordisk's GLP-1 drugs, and the deal is expected to contribute to the company's filling capacity from 2026 onwards.
- Related to the acquisition, there are ongoing discussions about the impact on existing contracts held by other Catalent facilities, but Novo Nordisk has confirmed that contracts at other facilities will remain in place for several years after the deal is finalized.
- The purchase price represents a 16.5% premium to Catalent's closing price on the day before the deal was announced, and a significant premium compared to the weighted average price over the previous two months.
- The deal is expected to close by the end of 2024 and is viewed as beneficial to the wider CDMO industry, which could lead to a second wave of consolidation or M&A activity and significant capital investment across CDMOs.
The transaction is anticipated to strengthen Novo Nordisk's position in the production of important drugs like Wegovy and Ozempic. The acquisition is one indication of the industry's adaptation to the growing demand for contract manufacturing services.