Novo Nordisk Buys Catalent for 10.66 Billion to Produce More Wegovy

The Danish pharmaceutical multinational Novo Nordisk will buy the contract drug production company Catalent, until now its supplier of Wegovy, a drug indicated for diabetes and also used for weight loss. It will do so through its parent company, Novo Holdings, and for the amount of 10.66 billion.

The anticipation of the purchase announcement has skyrocketed Catalent shares by 12%, to 57 euros. Novo Holdings, owner of almost 77% of Novo Nordisk’s voting shares, will buy all outstanding shares of its supplier in cash for almost 59 euros.

With this purchase, Novo Nordisk adds three new filling and finishing centers to its infrastructure with which the Danish pharmaceutical company hopes to significantly increase its production by 2026. The assumption of Catalent’s debt by Novo Holdings is also part of the agreement.

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Novo Nordisk had to restrict Wegovy production to focus on increasing its production capacity

Wegovy stands as Novo Nordisk’s big bet. This medicine was what placed the Danish multinational company as the most valuable company in Europe last September, surpassing the French luxury group Lvmh (owner of the Dior, Givenchy and Louis Vuitton brands).

On those same dates, the Danish pharmaceutical company decided to restrict the production of the popular drug due to its high demand while waiting to increase its production capacities. The purchase of Catalent responds to this aspiration.

This popular drug is marketed in Germany, Denmark, the United States, the United Kingdom and Switzerland. The Spanish Agency for Medicines and Health Products (Aemps) authorized the distribution of Wegovy in Spain through the mandatory Therapeutic Positioning Report, but at the end of January Novo Nordisk had not presented its financing plan, so it remains up in the air whether its sale in this country will be soon .

The Aemps approval was motivated by the shortage of the type 2 diabetes drug Ozempic, also owned by Novo Nordisk.

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(Featured image by James Yarema via Unsplash)

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First published in PlantaDoce. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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