Novo Nordisk announces $11bn acquisition of fill-finish sites to boost global manufacturing

In a strategic move to enhance its global manufacturing capabilities, Novo Nordisk has announced a significant acquisition from Novo Holdings A/S, involving three fill-finish sites, in a deal worth $11 billion. This acquisition comes as part of a broader transaction where Novo Holdings A/S has agreed to acquire Catalent, Inc., a leading global contract development and manufacturing organization based in Somerset, New Jersey. This development marks a continuation of the long-standing collaboration between Novo Nordisk and Catalent, aiming to significantly boost Novo Nordisk’s capacity to serve more individuals living with diabetes and obesity with both current and future treatments.

The three acquired manufacturing sites, located in Anagni (Italy), Brussels (Belgium), and Bloomington (Indiana, US), specialize in the sterile filling of drugs and collectively employ over 3,000 people. These facilities are expected to gradually increase Novo Nordisk’s filling capacity from 2026 onwards, providing strategic flexibility and future optionality for the company’s existing supply network.

Novo Nordisk Expands Manufacturing Capacity with $11 Billion Acquisition of Fill-Finish Sites

Lars Fruergaard Jørgensen, president and CEO of Novo Nordisk, emphasized the importance of the acquisition, stating, “We are very pleased with the agreement to acquire the three Catalent manufacturing sites which will enable us to serve significantly more people living with diabetes and obesity in the future. The acquisition complements the significant investments we are already doing in active pharmaceutical ingredients facilities, and the sites will provide strategic flexibility to our existing supply network.”

The acquisition, which is primarily debt-financed, is not expected to impact Novo Nordisk’s communicated share buyback programme of DKK 20 billion. However, it is anticipated to have a low single-digit negative impact on operating profit growth in both 2024 and 2025. The transaction is slated for completion towards the end of 2024, following the merger of Catalent and the Novo Holdings subsidiary, subject to customary closing conditions, including approvals by Catalent shareholders and regulatory authorities.

The acquisition of these fill-finish sites is aligned with Novo Nordisk’s strategic objectives of expanding its manufacturing capabilities and ensuring the provision of its treatments to a broader patient base. The company’s Board of Directors, supported by an independent financial advisor’s fairness opinion, has approved the acquisition, affirming its alignment with the best interests of Novo Nordisk and its shareholders.