Novo Holdings Nears EU Approval for $16.5 Billion Catalent Acquisition

Novo Holdings is poised to receive unconditional approval from the European Union for its planned $16.5 billion acquisition of U.S.-based contract drug manufacturer Catalent, according to a source familiar with the matter. The move represents a significant milestone for the deal, which aims to bolster Novo Nordisk’s production of its highly sought-after weight-loss drug, Wegovy.

The European Commission, which oversees competition matters within the EU, is expected to deliver its final decision by December 6, though it has declined to comment on the matter, per Reuters. Novo Holdings, along with Catalent and Novo Nordisk, have not provided statements regarding the development.

The acquisition could further enhance Novo Nordisk’s standing as Europe’s most valuable company by market value. Novo Holdings, the controlling shareholder of the Danish pharmaceutical giant, has reaped substantial benefits from the commercial success of Wegovy, a once-weekly injectable medication that has gained traction globally. By integrating Catalent’s manufacturing capabilities, Novo Nordisk aims to scale up production of Wegovy to meet growing demand.

Related: EU Probes Novo Holdings’ $16.5 Billion Acquisition of Catalent

Additionally, sources noted that Catalent is preparing its senior management in anticipation of the deal’s completion.

While EU approval seems imminent, the proposed acquisition still faces scrutiny in the United States. In May, both companies acknowledged receiving a second request for information from the U.S. Federal Trade Commission (FTC), signaling an extended review process. However, there has been no subsequent update from the FTC regarding the status of its investigation.

The transaction underscores Novo Holdings’ strategic push to expand its footprint in drug manufacturing and capitalize on the booming market for weight-loss treatments.

Source: Reuters