Novo Holdings, the controlling shareholder of Novo Nordisk, has officially completed its $16.5 billion acquisition of Catalent, a leading contract drug manufacturer. This strategic move is poised to bolster Novo Nordisk’s production capabilities for Wegovy, the company’s blockbuster weight-loss medication.
As part of the deal, Novo Nordisk gains control of three key fill-finish facilities located in Italy, Belgium, and the United States. These facilities will now be fully dedicated to manufacturing and filling injection pens for Wegovy, addressing the rising global demand for the medication.
The acquisition process, which began with Novo Holdings’ agreement in February, faced scrutiny from U.S. consumer groups and labor unions urging the Federal Trade Commission (FTC) to block the transaction. Despite these challenges, the FTC did not oppose the deal. Additionally, earlier this month, European antitrust regulators gave their approval, citing sufficient competition in the contract manufacturing market to prevent monopolistic practices.
Wegovy, chemically known as semaglutide, has seen a meteoric rise since its U.S. launch in 2021. It has since expanded to 15 additional countries, becoming a cornerstone of Novo Nordisk’s portfolio. Wegovy belongs to the GLP-1 receptor agonist class of drugs, which mimic a hormone that regulates blood sugar, slows digestion, and suppresses appetite.
The popularity of GLP-1-based drugs, including Eli Lilly’s rival treatment Zepbound, has driven companies to ramp up production to meet skyrocketing demand. Analysts project that the global obesity drug market could reach a staggering $150 billion annually within the next decade.
Novo Nordisk’s acquisition of Catalent is expected to alleviate supply constraints for Wegovy and position the company as a leader in meeting growing patient needs. By integrating Catalent’s state-of-the-art facilities into its operations, Novo Nordisk will enhance its ability to scale production efficiently while maintaining high-quality standards.
The acquisition underscores Novo Holdings’ commitment to advancing innovation in the pharmaceutical industry and supporting Novo Nordisk’s mission to address the global obesity epidemic. With regulatory hurdles cleared and the deal finalized, Novo Holdings and Novo Nordisk are set to play an even larger role in shaping the future of obesity treatment and beyond.
