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Novo Nordisk embarks on global acquisition & strategic investment spree

Danish drug major, Novo Nordisk is embarking on a global acquisition, marking a strategic move to expand its presence in the pharmaceutical industry. As part of this acquisition, Novo Nordisk will acquire three fill-finish sites from Novo Holdings A/S and New Jersey-based Catalent, Inc. This acquisition emphasizes Novo Nordisk's commitment to expanding its manufacturing capabilities and ensuring flexibility within its supply network, for 11 billion USD.

the company aims to extend its reach to individuals affected by diabetes and obesity, and this acquisition is in line with that objective, a statement released recently added. The three manufacturing sites, located in Anagni (Italy), Brussels (Belgium), and Bloomington (India, US), specialise in the sterile filling of drugs. The acquisition will incrementally boost Novo Nordisk's filling capacity from 2026 onward, strategically positioning the company for operational growth.

Despite a projected low single-digit negative impact on operating profit growth in 2024 and 2025, the acquisition is poised to fortify Novo Nordisk's position in the pharmaceutical landscape. Evercore, an independent financial advisor, has provided a fair opinion, affirming the financial soundness of the acquisition.

Meanwhile, Novo Holdings, the holding and investment arm managing assets for the Novo Nordisk Foundation, plays a crucial role in orchestrating this transaction, aligning with its broader mission of improving health and sustainability. Novo Holdings has also announced a significant investment in the Indian private hospital chain Manipal Hospitals, reflecting its commitment to addressing the growing demand and underserved healthcare infrastructure in India.

The demand for private hospital care in India is driven by a growing middle class, expanding health insurance coverage, and adopting sophisticated medical technology at private institutions. Novo Holdings aims to leverage this growth by focusing on key markets in the region, including India, Southeast Asia, and China.

The acquisition's completion is contingent on the merger of Catalent and the Novo Holdings subsidiary, expected by the end of 2024, subject to customary closing conditions and regulatory approvals. Novo Nordisk's commitment to honoring customer obligations at the acquired Catalent sites underscores its dedication to seamless operations post-closure.

Novo Nordisk is well known for blockbuster drugs like Wegovy for obesity and Ozempic for diabetes. The Dutch pharmaceutical major plans to introduce Wegovy to India in 2026, following regulatory approvals and ensuring sufficient supply to meet the anticipated demand. This move will contribute to Novo Nordisk's operational growth, and the company is committed to expanding its footprint in the pharmaceutical industry.

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