Ozempic Maker Novo Nordisk Plans Bond Sale to Fund Expansion
Novo Nordisk A/S plans to sell bonds for the first time in more than two years to help finance its large program to expand production of its blockbuster treatments.
Novo would be testing the bond market for the first time since it became Europe’s most valuable company and a pop-culture phenomenon, sparked by excessive demand for its diabetes drug Ozempic and obesity treatment Wegovy.
The Danish company is investing heavily in existing and new production facilities and earlier this year said it plans to acquire three factories, originally owned by Catalent Inc., for $11 billion.
Novo, through its finance subsidiary in the Netherlands, has mandated banks to help it issue euro-nominated bonds in a benchmark offering with maturities ranging from two to 10 years, subject to market conditions, according to a person familiar with the matter. Proceeds would be used for general corporate purposes, including financing the Catalent acquisition, the people said. That deal is expected to close toward the end of this year.
Demand for Ozempic and Wegovy prompted Novo earlier this month to raise its 2024 forecast, saying sales could surge as much as 27% and operating profit by as much as 30%.
Novo has hired BNP Paribas SA, Deutsche Bank AG, HSBC Holdings Plc and ING Groep NV as global coordinators to arrange fixed income investor calls on Monday. Deutsche will be coordinating roadshow logistics, according to the person familiar with the plans, who asked not to be identified because they’re not authorized to speak about it.
Last week, Novo doubled its euro medium term note program to a total of 20 billion euros ($21.6 billion). Novo didn’t immediately comment in response to calls and an email from Bloomberg News.
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