UPDATE
We are investigating whether Catalent, Inc. (NYSE: CTLT) (“Catalent”) has violated federal securities laws based on a report by Bloomberg alleging that inspectors from the U.S. Food and Drug Administration (“FDA”) found that safety and quality standards are not being met at an Indiana factory operated by Catalent that manufactures the popular weight injection Wegovy. The plant is among those being acquired by Novo Nordisk in connection with the recently announced acquisition of Catalent by Novo Holdings.
If you have questions about your legal rights in light of the above news, you can contact the firm to discuss your options at no charge by completing and submitting the form below.
Why is there an investigation?
As discussed below, on February 5, 2024, Catalent announced that it had agreed to be sold to Novo Holdings for $63.50 per share in cash. Novo Holdings is the controlling shareholder of the Novo Group companies (including Novo Nordisk), and Catalent is one of Novo Nordisk’s main manufacturing partners for the popular weight-loss drug Wegovy. As part of the transaction, Novo Nordisk will acquire three Catalent manufacturing facilities, including a plant located in Bloomington, Indiana.
On February 6, 2024, however, Bloomberg published an article reporting that the Indiana factory to be acquired by Novo Nordisk is not meeting safety and quality standards. The article was based on a 10-page FDA inspection report obtained by Bloomberg via a Freedom of Information request that, according to Bloomberg, shows that FDA inspectors visited the Indiana factory in October and November and documented multiple instances of workers failing to ensure the quality and purity of drugs produced there. According to Bloomberg, the report also notes that a “pest” had been found somewhere on a manufacturing line handling syringes in June.
As a result of the Bloomberg article, Catalent’s stock price dropped 2.27% in trading on February 6, 2024.
ORIGINAL POST
We are investigating the fairness of the price of $63.50 per share in cash for which Catalent, Inc. (NYSE: CTLT) (“Catalent”) has agreed to be sold to Novo Holdings.
Notably, Novo Holdings is the controlling shareholder of the Novo Group companies (including Novo Nordisk), and Catalent is one of Novo Nordisk’s main manufacturing partners for its popular weight-loss drug Wegovy.
If you remain a Catalent shareholder and question the fairness of the price, you may contact our firm to discuss your legal rights at no charge by completing and submitting the form below.
Why is there an investigation?
On February 5, 2024, Catalent announced that it had agreed to be sold to Novo Holdings for $63.50 per share in cash.
“We are investigating whether the Catalent Board of Directors acted in the best interests of Catalent shareholders in approving the sale,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether the price agreed upon is fair to Catalent shareholders, as well as whether all material information regarding the transaction has been fully disclosed.”
Notably, Novo Holdings is the controlling shareholder of the Novo Group companies (including Novo Nordisk), and Catalent is one of Novo Nordisk’s main manufacturing partners for its popular weight-loss drug Wegovy.
This fact is significant because, on August 28, 2023, Catalent entered into a cooperation agreement with activist investor Elliott Management to, among other things, add four new independent directors to the Catalent Board, including Steven Barg, global head of corporate engagement at Elliott.
Now, six months later, Catalent has agreed to sell itself to Novo Holdings. On SeekingAlpha, at least one Catalent shareholder claims there is a connection, writing that “Novo [is] getting this on the cheap, thanks Elliot! Another good deal for you at the expense of retail.”