MNC Mega-Deals: Novo Nordisk Expands GLP-1 Capacity with $16.5B Catalent Acquisition, Novartis Bolsters Oncology Pipeline with $2.9B MorphoSys Buyout, and Merck Strengthens Animal Health with $1.3B Aqua Business Deal

On February 5, Novo Holdings, the largest shareholder of Novo Nordisk, announced that it would acquire Catalent, Inc., a U.S.-based biopharmaceutical contract manufacturer, for $16.5 billion. Following the announcement, Catalent's stock price rose about 12% in pre-market trading in the U.S., while Novo Nordisk increased by 1.20%.

After the completion of the merger, Catalent will become a private company. As part of the transaction, Novo Nordisk will acquire three filling plants from Novo Holdings for an upfront payment of $11 billion.

These three filling plants, with over 3,000 employees, have all been involved in the production of Novo Nordisk's flagship obesity drug, Wegovy. At the end of last year, plans were announced to invest in new production facilities in Denmark and France. Last week, Novo Nordisk stated that the starting dose of Wegovy shipped to the U.S. had more than doubled, allowing more people to receive this treatment.

Novo Nordisk CEO Lars Fruergaard Jorgensen said in the statement, "This will enable us to serve more patients with diabetes and obesity in the future." The press release noted that this acquisition is expected to gradually increase Novo Nordisk's filling capacity starting from 2026, marking an important step for Novo Nordisk to expand its GLP-1 drug commercial empire.

On February 5, Novartis announced that it would acquire MorphoSys AG for €68 per share or a total of €2.7 billion (approximately $2.9 billion) in cash. The acquisition is subject to customary closing conditions, including the acceptance threshold of at least 65% of the shares outstanding in the tender offer and regulatory approvals.

MorphoSys AG is a global biopharmaceutical company headquartered in Germany, founded in 1992 and dedicated to the development of innovative oncology drugs. The company possesses various antibody, protein, and peptide technologies for the discovery and development of proprietary and collaborative drug candidates, with a broad pipeline comprising over 100 drug candidates. Before the stock market closed, MorphoSys' share price surged by 56%.

The deal centers on MorphoSys's cancer treatments, including the experimental drug Pelabresib, which is in late-stage testing as a treatment for myelofibrosis. MorphoSys is also testing another drug, tulmimetostat, for solid tumors and lymphoma.

In addition, Incyte announced that it has obtained the exclusive rights to a drug called tafasitamab, which was co-developed with MorphoSys. It is already marketed under the brand names Monjuvi and Minjuvi as a treatment for certain lymphomas. Incyte (INCY) will pay MorphoSys $25 million to gain exclusive global rights for the development and commercialization of tafasitamab.

This acquisition will further expand and complement Novartis' product line in the priority treatment area of oncology, while also strengthening Novartis' global presence in the field of hematology.

U.S. pharmaceutical giant MSD announced on Monday local time that it would acquire the aqua business of Elanco Animal Health for $1.3 billion in cash, a move that will expand the pharmaceutical giant's animal health business.

Elanco Animal Health, Inc. is a company dedicated to the innovation, development, production, and sales of animal health products. Geographically, the company's business spans globally, with products sold in more than 90 countries. It provides a range of products for food animals, including those used in the production of cattle, sheep, goats, and pigs.

The deal is expected to be completed in mid-2024. Upon completion, MSD will acquire Elanco's drugs, vaccines, supplements, and other products targeting aquatic species. The aqua business for aquatic species generated approximately $175 million in revenue and about $92 million in adjusted EBITDA in 2023. The divestiture also includes around 280 employees from Elanco Animal Health, Inc.

As part of the deal, the animal health company will also sell two manufacturing plants located in Canada and Vietnam, as well as a research facility in Chile. Following the announcement, Elanco's stock price rose more than 7.7%, while MSD's stock price remained almost flat.