Injection pens of Novo Nordisk’s weight-loss drug Wegovy are displayed in this picture illustration in Oslo, Norway, November 21,2023
Victoria Klesty|Reuters
Novo Nordisk‘s moms and dad business on Monday stated it will obtain drug maker Catalent in a $165 billion offer that might assist enhance the supply of the extremely popular weight reduction injection Wegovy and diabetes shotOzempic
Catalent is the primary provider of fill-finish work, which includes filling and product packaging syringes and injection pens, for Novo Nordisk’sWegovy
As part of the offer, Danish drugmaker Novo Nordisk will purchase 3 of Catalent’s production websites from its moms and dad business, Novo Holdings, for $11 billion. Novo Holdings owns nearly 77% of the ballot shares in Novo Nordisk.
Novo Nordisk and Novo Holdings stated they anticipate the acquisition of the plants and the more comprehensive offer to purchase Catalent to close at the end of2024
Novo Nordisk included that it anticipates its purchase to slowly assist increase its filling capability from 2026 and beyond. The business currently contracts the 3 plants, which lie in Italy, Belgium and Bloomington,Indiana
Catalent shares increased about 10% in premarket trading Monday after the offer statement. The business has a market price of approximately $10 billion. Novo Nordisk’s stock increased nearly 2% in premarket trading, for a market price of about $390 billion.
Shares of Novo Nordisk leapt nearly 53% in 2015 as Wegovy and Ozempic skyrocketed in appeal– and slipped into lacks– for their capability to assist clients lose substantial weight gradually.
The Catalent offer is the business’s newest effort to enhance production capability for its drugs as it deals with competitors from Eli Lilly and other emerging rivals in the weight reduction drug market.
Last year, the business revealed strategies to buy brand-new production centers in Denmark andFrance Novo Nordisk likewise stated recently that it has more than doubled the variety of Wegovy starter dosages it’s delivering to the U.S., which permit more clients to start the treatment.
Under the regards to the offer, Novo Holdings will purchase Catalent for $6350 a share in money, a premium of 16.5% to Catalent’s closing cost on Friday.
The offer to purchase Catalent has the support of activist financier Elliott Investment Management, which has a stake in the U.S. business, according to NovoHoldings
Notably, a few of Catalent’s factories that make Wegovy have actually been connected to to regulative issues in the past. Reuters reported in July that Catalent’s factory in Brussels that fills Wegovy pens had actually consistently breached U.S. sterile-safety guidelines in current years which personnel had actually stopped working to carry out necessary quality checks.
