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The ongoing supply constraints for Novo Nordisk’s (NVO) hugely popular weight loss therapy, Wegovy, are expected to ease as the company’s parent, Novo Holdings, agreed to acquire the U.S. contract manufacturer Catalent (NYSE:CTLT) in a $16.5B deal on Monday.
Shortly after the all-cash deal closes later this year, Novo (NVO) will acquire three CTLT fill-finish sites located in Anagni, Italy, Bloomington, Indiana, and Brussels, Belgium, from Novo Holdings, which owns ~77% voting shares in the Danish drugmaker.
The transaction is anticipated to help the company gradually expand its filling capacity in 2026, Novo (OTCPK:NONOF) said. Last week, the company posted better-than-expected revenue for 2023, thanks mainly to its diabetes and obesity franchise led by GLP-1 receptor agonists Ozempic and Wegovy.
The capacity is “a key strategic consideration for Novo Nordisk particularly when (…) making sure there is broader rollout for Ozempic and Wegovy,” Kasim Kutay, CEO of Novo Holdings, said during an interview with Reuters.
Thermo Fisher Scientific (TMO), which Novo (NVO) has contracted to fill-finish Wegovy, opened lower after the announcement, while Catalent’s (CTLT) European rival, Lonza (OTCPK:LZAGF) (OTCPK:LZAGY), traded higher.
The deal is unlikely to draw regulatory scrutiny because Novo Holdings is only selling three locations from CTLT’s global manufacturing network, which comprises roughly 50 sites, Reuters reported, citing a person familiar with the matter.
The division of assets between NVO and its parent should also ease regulatory concerns about a potential impact on Catalent’s (CTLT) other clients. “Novo Nordisk will ensure an ordinary transition and will make sure that all the customers will continue to be taken care of,” the source added.