MONSEY, N.Y., Feb. 07, 2024 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating whether Catalent, Inc. (NYSE: NYSE:CTLT) (Catalent) has violated federal securities laws based on a report by Bloomberg alleging that inspectors from the U.S. Food and Drug Administration (FDA) found that safety and quality standards are not being met at an Indiana factory operated by Catalent that manufactures the popular weight injection Wegovy. The plant is among those being acquired by Novo Nordisk (NYSE:NVO) in connection with the recently announced acquisition of Catalent by Novo Holdings.
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Why is there an investigation?
On February 5, 2024, Catalent announced that it had agreed to be sold to Novo Holdings for $63.50 per share in cash. Novo Holdings is the controlling shareholder of the Novo Group companies (including Novo Nordisk), and Catalent is one of Novo Nordisk's main manufacturing partners for the popular weight-loss drug Wegovy. As part of the transaction, Novo Nordisk will acquire three Catalent manufacturing facilities, including a plant located in Bloomington, Indiana.
On February 6, 2024, however, Bloomberg published an article reporting that the Indiana factory to be acquired by Novo Nordisk is not meeting safety and quality standards. The article was based on a 10-page FDA inspection report obtained by Bloomberg via a Freedom of Information request that, according to Bloomberg, shows that FDA inspectors visited the Indiana factory in October and November and documented multiple instances of workers failing to ensure the quality and purity of drugs produced there. According to Bloomberg, the report also notes that a pest had been found somewhere on a manufacturing line handling syringes in June.
As a result of the Bloomberg article, Catalent's stock price dropped 2.27% in trading on February 6, 2024.
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Wohl & Fruchter LLP, with offices in New York City and Monsey, has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
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