NVO - Why Novo Nordisk Stock Crushed the Market on Monday
2024-02-05 18:07:44 ET
A major acquisition by its controlling shareholder pushed Novo Nordisk 's (NYSE: NVO) U.S.-listed shares 4% higher on Monday. As a result of the deal, Novo Nordisk will acquire from that shareholder (Novo Holdings) three fill-finish sites currently operated by the acquisition target. The jump in Novo Nordisk's share price contrasted quite positively with the S&P 500 index's 0.3% slump for the session.
On Monday morning, Novo Holdings revealed that it has entered into an agreement to take possession of healthcare contract manufacturer Catalent (NYSE: CTLT) . The price of the all-cash deal is $63.50 per share, a nearly 17% premium to Catalent's closing price last Friday. That gives it an enterprise value of $16.5 billion. The transaction is expected to close toward the end of this year.
Catalent operates more than 50 manufacturing facilities around the world; Novo Holdings is to sell three fill-finish facilities to Novo Nordisk. Two are located in Europe (Italy and Belgium, to be more precise) while the third sits in Bloomington, Indiana.
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Why Novo Nordisk Stock Crushed the Market on Monday