Novo Holdings Aims to Double Catalent's Size Amid U.S. Manufacturing Shift

Novo Holdings plans to double its newly acquired contract drugmaker, Catalent, within five years, focusing on U.S. manufacturing. The $16.5 billion acquisition is aimed at enhancing supply chains amid potential U.S. policy changes. Catalent is positioned to benefit from shifts away from Asian manufacturers.

Novo Holdings, the primary shareholder of Novo Nordisk, is targeting a doubling of size for its recent acquisition, Catalent, within five years. This move comes as the firm anticipates an increased emphasis on U.S. manufacturing under the anticipated policies of President-elect Donald Trump.

The acquisition, a $16.5 billion transaction finalized last month, included Catalent, a U.S.-based contract drugmaker. Following the acquisition, Novo Holdings sold three of Catalent's plants utilized in drug manufacturing to Novo Nordisk for $11 billion. This strategic sale is aimed at boosting supplies of Novo Nordisk's weight-loss drug, Wegovy.

Jonathan Levy, the Novo Holdings partner behind the deal, expressed optimism without a strict revenue target, aiming to set corporate strategy first. He expects more companies will seek Western alternatives to Asian manufacturers amidst Trump's 'America First' policy. Catalent stands to gain significantly from these shifts, benefitting from a strong pipeline of more than 90 biopharmaceutical assets and potential legislative changes affecting Chinese partners.

(With inputs from agencies.)