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KEY TAKEAWAYS
- Shares of Catalent soar on information Novo Holdings, the bulk proprietor of Novo Nordisk, is buying the syringe maker for $16.5 billion in money.
- The deal represents a 16.5% premium over Catalent’s pre-announcement inventory value Friday.
- The acquisition expands Novo Nordisk’s manufacturing capability and provide flexibility, notably for its Wegovy weight reduction drug.
Shares of syringe maker Catalent (CTLT) soared 10% in early buying and selling after it signed a deal to be bought to the controlling shareholder of Novo Nordisk (NVO) for $16.5 billion.
Novo Holdings will buy Catalent’s all excellent shares for $63.5 per share in an all-cash transaction. The worth interprets to a 16.5% premium over Catalent’s share value February 2, 2024, the final buying and selling day earlier than the announcement.
Headquartered in Somerset, New Jersey, Catalent is the first producer accountable for filling and packaging injection pens for Novo Nordisk’s in style weight-loss drug Wegovy.
As soon as the deal is finalized, Novo Nordisk, which additionally makes the diabetes drug Ozempic, will buy three of Catalent’s “fill-finish” websites from Novo Holdings for $11 billion in a debt transaction, the corporate mentioned in a separate assertion. The websites are situated in Italy, Belgium and the US, and have ongoing collaborations with Novo Nordisk.
“The acquisition enhances the numerous investments we’re already doing in lively pharmaceutical elements amenities, and the websites will present strategic flexibility to our current provide community.”mentioned Lars Fruergaard Jørgensen, president and chief govt officer at Novo Nordisk.
Novo Nordisk mentioned the acquisition of the three websites could have a “low single-digit damaging influence on working revenue progress in each 2024 and 2025.”
Novo Holdings and Catalent mentioned they count on their deal to shut towards the tip of the 12 months, topic to shareholder and regulatory approvals.
Catalent was up 9.87% at at $59.91 at 10.27 a.m. ET Monday following the information although are down 11% up to now 12 months. The American depository receipts (ADRs) of Novo Nordisk rose 2.89%.
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