The acquisition of contract development and manufacturing organization (CDMO) Catalent (NYSE: CTLT) by Novo Holdings A/S, the controlling shareholder of Denmark’s major pharmaceutical company Novo Nordisk (NYSE: NVO), has been cleared by the European Commission (EC). This endorsement smooths the path for Novo Nordisk’s subsequent acquisition of three manufacturing sites from Novo Holdings, enhancing its global manufacturing capabilities.
Agreement and Expected Benefits
The agreement to acquire Catalent for USD 16.5 billion was announced in February of this year. Upon the closure of the deal, Novo Holdings is set to sell three sterile fill-finish facilities to Novo Nordisk, located in Belgium, Italy, and the US. This transaction, valued at USD 11 billion, is expected to significantly increase Novo Nordisk’s filling capacity starting from 2026. The expansion is a strategic move to bolster Novo Nordisk’s production capabilities and global footprint.
Stockholder Approval and Anticipated Completion
On 29 May 2024, Catalent stockholders voted to approve the pending transaction, which has since received approval from authorities in numerous jurisdictions. With the European Commission’s clearance, Novo Nordisk is on track to complete the acquisition by the end of 2024, marking a significant milestone in the company’s growth strategy.-Fineline Info & Tech
