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Ongoing supply constraints for Novo Nordisk’s (NVO) highly popular weight-loss therapy, Wegovy, are expected to ease as its parent company, Novo Holdings, has agreed to acquire U.S. contract manufacturer Catalent (NYSE:CTLT) in a $16.5 billion deal on Monday.
In short after the all-cash deal closes later this year, Novo (NGO) will acquire three CTLT fill-finish sites located in Anagni, Italy, Bloomington, Indiana, and Brussels, Belgium, from Novo Holdings, which owns approximately 77% of the voting rights shares of the Danish pharmaceutical company.
The transaction is expected to help the company gradually expand its filling capacity in 2026, Novo (OTCPK:NONOF) said. Last week, the company reported better-than-expected revenue for 2023, driven primarily by its diabetes and obesity franchise led by GLP-1 receptor agonists Ozempic and Wegovy.
Capacity is “a key strategic consideration for Novo Nordisk particularly when (…) securing broader deployment for Ozempic and Wegovy,” said Kasim Kutay, CEO of Novo Holdings, during an interview with Reuters.
Thermo Fisher Scientific (TMO), which Novo (NVO) hired to fill and finish Wegovy, opened lower following the announcement, while Catalent’s (CTLT) European rival Lonza (OTCPK:LZAGF) (OTCPK:LZAGY) , was trading higher.
The deal is unlikely to attract regulatory scrutiny because Novo Holdings is selling only three locations of CTLT’s global manufacturing network, which includes about 50 sites. Reuters he reported citing a person familiar with the matter.
The business split between NVO and its parent company should also alleviate regulatory concerns about a potential impact on Catalent’s (CTLT) other customers. “Novo Nordisk will ensure a smooth transition and ensure that all customers continue to be supported,” the source added.