Novo Nordisk $11b acquisition to support manufacturing capacity

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Novo Nordisk is set to acquire three fill-finish manufacturing sites from Novo Holdings A/S (Novo Holdings) for $11 billion. This agreement is part of a transaction in which Novo Holdings agreed to acquire the contract development and manufacturing organisation (CDMO) Catalent.

The three manufacturing sites in Anagni in Italy, Brussels in Belgium and in Bloomington, Indiana in the US, specialise in the sterile filling of drugs. In total, the three sites employ over than 3,000 people and all have ongoing collaborations with Novo Nordisk. The facilities account for just a portion of the 50 total Catalent sites.

Increasing capacity

Acquisition of the three sites will enable the manufacturing capacity to be expanded at scale and speed. Novo Nordisk specified that the transaction is expected to support an incremental increase in the company’s filling capacity from 2026 and onwards.

Acquisition benefits for Novo Nordisk

“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,” Kasim Kutay, CEO of Novo Holdings commented.

Lars Fruergaard Jørgensen, President and Chief Executive Officer at Novo Nordisk confirmed that operationally, the acquisition will “provide strategic flexibility” to the firm’s existing supply network.

Jørgensen shared that the firm is “very pleased” with the agreement, as it will allow the company to “serve significantly more people living with diabetes and obesity in the future”.

The merger of Catalent and the Novo Holdings subsidiary is anticipated to occur towards the end of 2024, upon completion of certain closing conditions. Acquisition of the fill-finish sites will be completed “as soon as possible”, according to Novo Nordisk.

The company also assured that until the acquisition is completed, Catalent will remain independent and separate from Novo Holdings and Novo Nordisk.

Continued manufacturing expansion

This news follows Novo Nordisk’s multi-billion dollar investment in November 2023, where the company announced plans to expand its production sites in France.