By Dominic Chopping and Chris Wack


Novo Holdings, the controlling shareholder of Danish pharmaceutical giant Novo Nordisk that makes weight-loss drug Wegovy, is buying drug manufacturer Catalent for $11.5 billion in cash.

Novo Holdings said Monday that it will buy New York-listed Catalent for $63.50 a share in cash, a premium of 16.5% to Catalent's closing price on Friday and a 47.5% premium to the 60-day volume-weighted average price as of Friday. It will also take on Catalent's debt, valuing the acquisition at $16.5 billion.

In connection with the deal, Novo Nordisk has moved to boost its production capacity by agreeing to buy three of Catalent's manufacturing sites from Novo Holdings for $11 billion.

Catalent is a contract manufacturer for the pharmaceutical industry and operates fill-finish sites, filling and packaging drugs for clients including Novo Nordisk.

Novo Nordisk will buy three fill-finish sites that will allow it to boost manufacturing capacity of its diabetes and obesity treatments while providing flexibility in its existing supply network, it said.

The three sites--which all have current collaborations with Novo Nordisk--are located in Italy, Belgium and the U.S., and employ more than 3,000 people.

The popularity of Wegovy has seen the company restrict supply as it scrambles to increase stocks. In recent months, it has outlined plans to invest more than $6 billion to increase capacity. Last month, it began gradually increasing supplies of lower-dose strengths, having limited supply in the U.S. since May to safeguard access for current patients.

Monday's acquisition won't be a quick fix, however, as the company doesn't expect the deal to increase its filling capacity until 2026. It warned last week that continued periodic supply constraints and drug-shortage notifications are expected to continue.

Acquisition of the sites will be completed following the merger of Catalent and Novo Holdings, which is expected toward the end of 2024.

Following the closing of the merger, Catalent shares will no longer trade on the New York Stock Exchange, and it will become a private company.


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

02-05-24 0811ET