Catalent CEO Assures Continuity After Novo Holdings Buyout: Retail Investors Wait And Watch

Catalent, Inc. ($CTLT) CEO Alessandro Maselli said in an open letter that he will continue to lead Catalent as President and CEO following its acquisition by Novo Holdings.

“A key factor in my decision to continue in my role is Novo Holdings’ commitment to provide support and capital to ensure unparalleled service to our customers and create new jobs as we drive Catalent’s growth,” he said.

Catalent is a manufacturing partner of Novo for Wegovy, a popular weight-loss drug. In February, the companies had announced that Novo Holdings will acquire Catalent in an all-cash transaction that values the latter at $16.5 billion on an enterprise value basis.

Novo Holdings also said it intends to sell three Catalent fill-finish sites and related assets acquired in the merger to Novo Nordisk ($NVO), in which Novo Holdings has a controlling interest, shortly after the closing of the merger. These three sites are located in Anagni, Italy; Bloomington, Indiana, USA; and Brussels, Belgium.

However, U.S. consumer groups have been voicing concerns on how the deal could potentially affect competition in the weight-loss drugs space and cutting-edge gene therapies. They have reportedly asked the U.S. Federal Trade Commission to block the transaction.

Maselli asserted in his letter that the firm’s commitments will not change, its focus will remain on its products and customers’ proprietary information will be protected.

Catalent’s acquisition by Novo Holdings is expected to close towards the end of calendar year 2024.

NYSE-listed shares of Novo Nordisk and Catalent were trading marginally in the red following the announcement. Retail sentiment inched up higher into the ‘neutral’ territory (47/100) from the ‘bearish’ zone a day ago.

Catalent shares have gained over 33% since the beginning of the year while Novo Nordisk shares are up over 14% on a year-to-date basis.

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