Catalent acquired by Novo Holdings for $16.5 billion

SOMERSET, N.J. - Catalent (NYSE:CTLT), Inc., a significant player in the development and supply of pharmaceutical treatments, has been acquired by Novo Holdings A/S, a global life sciences investment firm, for an all-cash transaction valued at approximately $16.5 billion. The deal comes as Catalent's stock reached its 52-week high of $63.50, delivering an impressive year-to-date return of 41.29% according to InvestingPro data. This acquisition, which was completed recently, will take Catalent off the public markets as its common stock will no longer be listed on the New York Stock Exchange.

Alessandro Maselli, Catalent's President and CEO, will continue to lead the company. He expressed confidence in the acquisition, stating that the partnership with Novo Holdings will enable Catalent to deliver superior outcomes for its customers and patients, and create value for stakeholders. Kasim Kutay, CEO of Novo Holdings, praised Catalent's pivotal role in product development and supply solutions for the pharmaceutical, biotechnology, and consumer health industries.

As part of the transaction, shareholders of Catalent common stock are entitled to receive $63.50 per share in cash, which is a 47.5% premium over the volume-weighted average price as of February 2, 2024. InvestingPro analysis indicates the company was trading above its Fair Value at the time of the deal, with a strong current ratio of 2.51 showing healthy liquidity. Following the completion of the transaction, Novo Nordisk (NYSE:NVO) A/S, a related entity, will acquire three of Catalent's fill-finish sites located in Italy, the USA, and Belgium, along with related assets.

Catalent is known for its extensive experience in development sciences, delivery technologies, and manufacturing across multiple modalities. The company supports the launch of over a hundred new products annually and supplies billions of doses of treatments each year. Novo Holdings, owned by the Novo Nordisk Foundation, is a major life sciences investor and manages a diverse investment portfolio.

The financial advisors for Catalent in this transaction were Citi and J.P. Morgan, while legal advice was provided by Skadden, Arps, Slate, Meagher & Flom LLP and Jones Day. Novo Holdings was advised by Morgan Stanley (NYSE:MS) & Co. LLC, with legal counsel from Goodwin Procter LLP and Linklaters LLP. Novo Nordisk received legal advice from Davis Polk & Wardwell LLP and Arnold & Porter Kaye Scholer LLP.

This strategic move is expected to position Catalent for future growth, leveraging Novo Holdings' resources and aligning with its mission to invest for the benefit of people and the planet. Despite reporting losses in the last twelve months, InvestingPro data shows the company maintained steady revenue growth of 4.71% and analysts expect a return to profitability this year. The information in this article is based on a press release statement and InvestingPro research, which offers comprehensive analysis of over 1,400 US stocks through its Pro Research Reports.

In other recent news, Novo Nordisk is moving closer to finalizing its transaction with Catalent, Inc., following the fulfillment of all regulatory closing conditions. The transition to private ownership under Novo Holdings is anticipated to provide Novo Nordisk with additional resources to drive innovation and enhance offerings. BMO Capital analyst Evan David Seigerman sees this as a bullish signal for Novo Nordisk, with additional manufacturing capacity expected to come online by 2026.

On a different note, QuidelOrtho Corporation has expanded its board of directors with the addition of healthcare veterans John R. Chiminski and R. Scott Huennekens. The company believes these industry veterans will enhance the board's depth of expertise in healthcare and biopharma.

Meanwhile, the European Commission has unconditionally approved the acquisition of Catalent, Inc., a prominent player in the development and supply of pharmaceutical treatments, by Novo Holdings A/S. The completion of the transaction is expected by the end of 2024.

In the financial sector, Catalent reported a first-quarter revenue of $1.02 billion, falling short of expectations. Jefferies maintains a hold rating on Catalent and revised its fiscal year 2025 revenue and EBITDA estimates for the company downwards following these results. These are the latest developments in these companies.

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