Novo Nordisk Moves Forward With Catalent Site Acquisitions

Novo Holdings A/S has fulfilled all regulatory conditions for acquiring Catalent, Inc., a global contract development and manufacturing organisation based in New Jersey, USA. With the necessary reviews completed, the transaction can proceed, along with Novo Nordisk’s purchase of three Catalent manufacturing sites from Novo Holdings A/S. Novo Nordisk had announced its agreement to acquire the three sites on February 5, 2024, and now expects the deal to be finalised in the coming days.

Once completed, the acquisition will slightly impact Novo Nordisk’s financial outlook. For 2024, it is projected to have a low single-digit negative effect on operating profit growth and reduce free cash flow due to the $11.7 billion acquisition cost. However, the company’s ongoing DKK 20 billion share buyback program will remain unaffected.

Looking ahead to 2025, the acquisition is expected to create a mid-single-digit negative impact on operating profit growth, driven by interest expenses from debt financing. As a result, Novo Nordisk will focus on strategic investments in internal growth, supply chain expansions, and dividends while holding off on initiating a new share buyback program in 2025.