The explosion in demand for the weight-loss drug Wegoby has prompted the holding company of its maker, Novo Nordisk, to buy the US-based drug giant for $16.5 billion ($12.70) and end its production capacity.
Novo Holdings has acquired New Jersey-based pharmaceutical company Catalent, which it plans to immediately sell three of its locations in the U.S. and Europe to Wegoby Novo Nordisk for $11 billion. This increases the ability of supply to match increasing demand.
The deal comes as Novo Nordisk’s diabetes treatments Wigovy and Ozempic continue to grow in popularity, solidifying the Danish drugmaker as Europe’s most valuable company, with a market value of approximately $500 billion. contributed to making it possible.
Novo’s boom has been largely driven by the drug’s popularity, used by celebrities such as Elon Musk and Oprah Winfrey, and increasingly used in public health. Last year, sales of Novo’s Nordisk obesity drug increased by 154% to reach £4.8 billion, of which Wegoby accounted for £3.6 billion.
However, this surge in demand has caused supply issues, with Novo Nordisk having to limit the number of starter doses of Wigoby it was scheduled to issue last May as demand outstripped the company’s manufacturing capacity.
In an interview with Reuters, Novo Holdings CEO Kassim Kutai said: “The key strategic considerations for Novo Nordisk are the broader rollout of Ozempic and Wigoby, especially with patients in mind. If we want to ensure this, we will strengthen our production capacity.”
Novo Holdings owns just over 28% of Novo Nordisk’s economic shares and 77% of its voting shares.
Lars Fluergaard Jorgensen, President and Chief Executive Officer of Novo Nordisk, said: “We are very pleased with the agreement to acquire Catalent’s three manufacturing sites. “We will be able to serve even more people.”
The deal between Novo Nordisk and its parent company will see it pay $11 billion for fill-finish facilities in Anagni (Italy), Brussels (Belgium) and Bloomington (Indiana, USA).
These two drugs, particularly Wegovy, have proven popular in the United States. Estimates by Novo Nordisk One million Americans have used the drug since it was approved in 2021, with 600,000 currently using it.
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This drug is injected into the body once a week and mimics the effects of the intestinal hormone GLP-1 by suppressing appetite and slowing the movement of food through the digestive system.
While these have helped many people achieve significant weight loss, they can also cause side effects, ranging from nausea, bloating, diarrhea, and fatigue to more severe stomach, kidney, and gallbladder problems and inflammation of the pancreas. There is a gender.
The NHS first started using Wegovy in what it called a “controlled limited launch” in September last year.
Eligible patients must have a body mass index (BMI) of 30 or above and have at least one weight-related comorbidity, which will be managed by NHS specialist weight management services, along with a low-calorie diet and exercise. .
