Press "Enter" to skip to content

Ozempic Maker’s Parent Company To Invest $7B Annually By 2030: ‘We Have More Money Than Ever To Invest’

Loading…
Loading…

Novo Holdings, the major shareholder of Danish pharmaceutical company Novo Nordisk NVO, plans to ramp up its annual investments to $7 billion by 2030.

What Happened: The investment firm, which manages the assets of the Novo Nordisk Foundation, intends to increase its annual investments from $3 billion in 2023 to $7 billion by 2030. This surge is attributed to the rising dividends from its 28% stake in Novo Nordisk and other investments, reported Financial Times on Sunday.

Novo Holdings’ CEO, Kasim Kutay, highlighted that the increasing income from its investments and the success of Novo Nordisk’s drugs like Ozempic and Wegovy drive this decision. The fund surge will be equally distributed between capital and life sciences investments.

“We have more money than ever to invest,” Kutay said.

See Also: Nvidia’s $1.7 Trillion Market Cap Surpasses Entire Chinese Stock Market: Investment Strategist

Novo Holdings moved significantly by acquiring Catalent, a pharmaceutical manufacturing company, for $16.5 billion. It then sold three Catalent sites to Novo Nordisk for $11 billion. According to Kutay, this deal will help Novo Nordisk expand its manufacturing capacity for diabetes and weight loss drugs by 2026. The company also plans to invest in other pharmaceutical services assets.

Why It Matters: This news comes after Novo Holdings’ recent deal to acquire Catalent and the subsequent sale of three Catalent sites to Novo Nordisk. The deal is expected to expand Novo Nordisk’s manufacturing capacity for its diabetes and weight loss drugs by 2026.

However, the Bloomington plant, one of the Catalent sites, is currently facing FDA scrutiny due to manufacturing concerns, which could potentially impact the future of Novo Nordisk’s weight-loss drugs.

As the introduction of Novo Nordisk’s groundbreaking weight-loss treatments is causing widespread concern in the food industry, the company’s parent’s decision to boost investments significantly could have a far-reaching impact on consumer behavior.

Read Next: Mark Zuckerberg Continues To Make A Killing With Meta’s Spectacular Surge By Selling Another $45M Worth Of Shares

Photo via Shutterstock


Engineered by Benzinga Neuro, Edited by
Pooja Rajkumari


The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you.
Learn more.


Loading…
Loading…

This post was originally published on this site

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *