Novo Nordisk: Catalent Acquisition Expands Wegovy Manufacturing Capacity at a Fair Price

Novo Holdings, the investment manager of the Novo Nordisk Foundation and controlling shareholder in Novo Nordisk, has agreed to acquire contract developer and manufacturer Catalent for $16.5 billion or $63.50 per share in cash, which represents a 16.5% premium to Catalent’s closing price on Feb. 2. We think Novo Holdings is paying a fair price for Catalent, and we have adjusted our fair value estimate for narrow-moat Catalent to the takeover price of $63.50 per share, which is very close to our intrinsic valuation of $65 per share. Pending regulatory approvals, we anticipate the transaction will close around the end of 2024.