Shares in drug manufacturer Catalent Inc (NYSE:CTLT) soared over 11% in pre-market trading as news broke that Novo Nordisk (NYSE:NVO)’s controlling shareholder is to buy the firm for US$16.5 billion.
Novo Holdings, which owns a majority stake in the weight-loss drug maker, unveiled the takeover on Monday, which includes assumed debt and, at US$63.50 a share, represents a 16.5% premium on Catalent’s Friday closing price.
Novo Nordisk (NYSE:NVO), Europe’s largest company by market cap, will take control of three separate production facilities as part of the deal.
Located in Italy, Belgium and Indiana in the US, these sites are set to support the rollout of Novo Nordisk (NYSE:NVO)’s flagship injectable weight-loss drugs, Wegovy and Ozempic.
“Over the past several years, Catalent has built a comprehensive end-to-end offering of services and capabilities to drive innovation in the healthcare system and improve patient outcomes,” Catalent chief executive Alessandro Maselli commented.
“This transaction is a testament to our team’s hard work and dedication to this mission and I am incredibly excited for this next step in our journey.”
The acquisition is expected to be finalised by late 2024 and remains subject to shareholder and regulatory clearance.
“It enables an expansion of the manufacturing capacity at scale and speed while providing future optionality and flexibility,” Novo Nordisk added.
“The acquisition is expected to gradually increase Novo Nordisk’s filling capacity from 2026 and onwards.”
Shares in Catalent climbed 11.36% in pre-market trading.