In a strategic move to fuel production for their popular weight-loss drug, Novo Holdings announced the acquisition of Catalent, Inc. (NYSE: CTLT). Under the agreement, Novo Holdings is set to acquire Catalent in an all-cash transaction valued at $16.5 billion on an enterprise value basis. Catalent stockholders will receive $63.50 per share in cash, representing a substantial 47.5% premium to the 60-day Volume-Weighted Average Price as of February 2, 2024.
Catalent operates more than 50 global sites, including the Gene and Cell Therapy facilities in Baltimore and Hammons, Maryland.
Upon closing of the merger, Novo Holdings intends to the sell three the Catalent fill-finish sites and their related assets to Novo Nordisk (CPH: NOVO) to bolster production capacity for their blockbuster Wegovy drug. These three sites are located in Anagni, Italy; Bloomington, Indiana, USA; and Brussels, Belgium.
Novo Holdings, a holding and investment company responsible for managing assets and wealth for the Novo Nordisk Foundation, brings its expertise and resources to further empower Catalent’s mission. Catalent, Inc. (NYSE: CTLT), a global leader in enabling the development and supply of advanced treatments, has consistently delivered innovation in healthcare.
Alessandro Maselli, President and CEO of Catalent, expressed his excitement about this new chapter, saying, “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. 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. We look forward to benefiting from Novo Holdings’ significant resources to accelerate investment in our business and enhance key offerings as we continue to offer premium development and manufacturing solutions for pharma and biotech customers.”
Novo Holdings CEO, Kasim Kutay, emphasized their commitment to supporting Catalent’s stakeholders, saying, “We are excited to partner with Catalent as it enters a new phase of growth and accelerates its mission to develop, manufacture and supply products that help people live better and healthier lives. With our expertise and track record of investing in high quality life sciences businesses, we believe Catalent is a very good strategic fit. We are excited to support the Company’s stakeholders in the years ahead, especially employees and customers as they work to develop new products to benefit patients. As engaged investors committed to productive relationships with all our partners, we look forward to working with the Catalent team to realise the Company’s full potential.
Importantly, our acquisition of Catalent is aligned with our mandate to invest in high quality life sciences companies for the benefit of the Novo Nordisk Foundation’s mission and philanthropic causes.”
This merger is expected to close toward the end of 2024, pending customary closing conditions and regulatory approvals. Once finalized, Catalent will transition to a private company, driving forward its mission to create products that enhance people’s lives.
This pivotal merger signifies a significant milestone in the life science industry, demonstrating the potential for growth and collaboration in the pursuit of improving global healthcare.
Read more about the deal on Catalent’s news page: https://investor.catalent.com/financial-news/news-details/2024/Novo-Holdings-to-Acquire-Catalent/default.aspx
