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Released February 15, 2024 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Danish pharmaceutical company Novo Nordisk A/S (NYSE:NVO) (Bagsværd, Denmark) is capitalizing on the unprecedented success of its diabetes and weight loss drugs by agreeing to pay US$11 billion to acquire three new production plants in Europe and the U.S.
Novo's controlling shareholder, Novo Holdings AS (Hellerup, Denmark), has bought contract development and manufacturing organization (CDMO) Catalent Inc. (NYSE:CTLT) (Somerset, New Jersey) for US$16.5 billion and will sell the three Catalent plants to Novo Nordisk. The plants, which are geared towards the final stage of drug manufacturing known as "fill and finish," are located in Brussels, Belgium; Anagni, Italy; and Bloomington, Indiana.
Catalent, which has more than 50 global sites and employs more than 18,000 people including 3,000 scientists and technicians, was a major manufacturer of COVID-19 vaccines for Johnson & Johnson (NYSE:JNJ) (New Brunswick) and Moderna Incorporated (NASDAQ:MRNA) (Cambridge, Massachusetts) among others, during the pandemic.
"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," said Lars Fruergaard Jørgensen, president and chief executive officer at Novo Nordisk. "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."
It is the latest in a string of investments made by the company to deal with severe supply shortages for its most popular drugs, its diabetes and anti-obesity products Ozempic and Wegovy. While both contain the same active ingredient, semaglutide--which can act as an appetite suppressant--Ozempic, which launched in 2017, is only meant for use by people with Type-2 diabetes, while Wegovy, launched in 2021, is specifically designed for weight loss. Rocketing sales of both drugs, thanks to high profile celebrity endorsement--has propelled Novo's share value to record highs, making it Europe's most valuable listed company at more than 450 billion euro (US$482 billion). That success has also led to global shortages of the drugs, something Novo Nordisk has been increasingly trying to solve over the past year by announcing plans to invest billions of dollars in expanding existing plants and buying new ones. Industrial Info reported in January that Novo Nordisk has plans to build a major manufacturing operation at its Grange Castle campus in Dublin, Ireland. With a reported investment of more than US$2 billion, its aim is to construct up to 1.6 million square feet of new facilities and employ more than 1,000 people. For additional information, see January 22, 2024, article - Novo Nordisk Taps Ireland for Weight Loss Production Boost.
Until last year, Catalent was the sole manufacturer of Ozempic and Wegovy but ran into production issues at the Brussels and Bloomington plants. The deal is perceived as a good one for Catalent, which has suffered manufacturing setbacks at a number of plants in Europe and the U.S. and falling revenues over the past year. This resulted in a major boardroom shakeup led by activist investor Elliott Management (New York), which was instrumental in pushing for the Novo Nordisk deal.
Alessandro Maselli, president and chief executive officer of Catalent, said: "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. 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."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Novo's controlling shareholder, Novo Holdings AS (Hellerup, Denmark), has bought contract development and manufacturing organization (CDMO) Catalent Inc. (NYSE:CTLT) (Somerset, New Jersey) for US$16.5 billion and will sell the three Catalent plants to Novo Nordisk. The plants, which are geared towards the final stage of drug manufacturing known as "fill and finish," are located in Brussels, Belgium; Anagni, Italy; and Bloomington, Indiana.
Catalent, which has more than 50 global sites and employs more than 18,000 people including 3,000 scientists and technicians, was a major manufacturer of COVID-19 vaccines for Johnson & Johnson (NYSE:JNJ) (New Brunswick) and Moderna Incorporated (NASDAQ:MRNA) (Cambridge, Massachusetts) among others, during the pandemic.
"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," said Lars Fruergaard Jørgensen, president and chief executive officer at Novo Nordisk. "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."
It is the latest in a string of investments made by the company to deal with severe supply shortages for its most popular drugs, its diabetes and anti-obesity products Ozempic and Wegovy. While both contain the same active ingredient, semaglutide--which can act as an appetite suppressant--Ozempic, which launched in 2017, is only meant for use by people with Type-2 diabetes, while Wegovy, launched in 2021, is specifically designed for weight loss. Rocketing sales of both drugs, thanks to high profile celebrity endorsement--has propelled Novo's share value to record highs, making it Europe's most valuable listed company at more than 450 billion euro (US$482 billion). That success has also led to global shortages of the drugs, something Novo Nordisk has been increasingly trying to solve over the past year by announcing plans to invest billions of dollars in expanding existing plants and buying new ones. Industrial Info reported in January that Novo Nordisk has plans to build a major manufacturing operation at its Grange Castle campus in Dublin, Ireland. With a reported investment of more than US$2 billion, its aim is to construct up to 1.6 million square feet of new facilities and employ more than 1,000 people. For additional information, see January 22, 2024, article - Novo Nordisk Taps Ireland for Weight Loss Production Boost.
Until last year, Catalent was the sole manufacturer of Ozempic and Wegovy but ran into production issues at the Brussels and Bloomington plants. The deal is perceived as a good one for Catalent, which has suffered manufacturing setbacks at a number of plants in Europe and the U.S. and falling revenues over the past year. This resulted in a major boardroom shakeup led by activist investor Elliott Management (New York), which was instrumental in pushing for the Novo Nordisk deal.
Alessandro Maselli, president and chief executive officer of Catalent, said: "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. 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."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
