Denmark-based company Novo Holdings to acquire Bloomington’s Catalent plant in a $16.5 billion acquisition announced Monday. Catalent is a pharmaceutical company that develops new technologies and medications for patients around the globe.
Novo Holdings is an investment company which manages the wealth of Novo Nordisk, a Danish pharmaceutical company that produces drugs like Ozempic and Wegovy
According to the Washington Post, Novo made an annual profit of 83.7 billion in Danish kroner for 2023 – approximately 11.9 billion in USD – which is the highest its annual profits have been in decades. This is likely due to the spike in sales of diabetes and weight loss drugs, increasing 38% in Danish kroner, to approximately 31.1 billion USD according to a company press release.
Ozempic and Wegovy were initially used to treat Type 2 diabetes but became nationally recognized for their ability to suppress appetites but also their adverse side effects. Wegovy was approved by the Food and Drug Administration for chronic weight management in 2021.
Novo Nordisk plans to boost supplies of Wegovy in the United States. The acquisition is likely a result of their need to expand to offer the semaglutide drug, which mimics the hormone released in part of the digestive tract after eating, to new patients.
The acquisition will change Catalent from publicly-traded to privately-owned. As of 2022, the Catalent plant located on 1300 S Patterson Dr., employed 4,000 staff and was the second-largest employer in Bloomington, although they made layoffs later that year. It is unclear yet how the change in ownership will impact the local operation and its employees.
The merger is expected to be finalized by the end of the 2024 calendar year.