Novo Nordisk; Catalent EUR Credit Assuming Done Deal, It Seems

Novo Nordisk (NOVOB DC); further to our earlier comment on the cash bid for Catalent (CTLT US), the latter’s sole EUR credit line (CTLT 2 3/8 03/01/28) is streaming over 200bp tighter now at <50bp (OAS).

• Novo is also doing an USD11bn deal over three pharma production sites with its foundation (which is the body actually buying Catalent), the net effect is to meaningfully increase Novo’s ability to produce Wegovy and Ozempic, its blockbuster obesity & diabetes treatments.
• The three plants are in the US, Italy and Belgium.
• The deal has approval from Elliott, the activist shareholder which owns 2.21% of Catalent (BBG) and the price moves would imply the equity market sees the risk of deal failure as low; the bid is at USD63.50 per share, equity is indicating pre-market at over USD61.