Ozempic Maker Novo Sells $5 Billion in Bonds to Fund Deal

Sanne Wass and Colin Keatinge

(Bloomberg) -- Novo Nordisk A/S is selling €4.65 billion ($5 billion) in bonds to fund plans to ramp up production of its blockbuster drugs, drawing high investor demand for its first debt issuance in more than two years.

The sale is Novo’s first since it became Europe’s most valuable company and a pop-culture phenomenon, sparked by excessive demand for its diabetes treatment Ozempic and obesity medicine Wegovy. The proceeds will help the Danish pharmaceutical giant finance its $11 billion acquisition of factories from Catalent Inc., a Novo spokesperson said by email.

Read more: Ozempic Maker Novo Nordisk Has Denmark’s Economy Hooked

The drugmaker on Tuesday marketed euro-denominated bonds in a four-part debt offering, with maturities ranging from two years to 10 years, through its finance subsidiary in the Netherlands, according to a person familiar with the matter.

High investor demand drove spreads down approximately 30 basis points below the initial price targets. The offering reeled in investor bids of more than €10.2 billion, the latest update showed.

Demand for Ozempic and Wegovy, which have risen in popularity due to their effectiveness for weight loss, prompted Novo earlier this month to raise its 2024 forecast, saying sales could surge as much as 27%. The company is investing heavily to expand its manufacturing capabilities and earlier this year announced plans to acquire three sites, originally owned by Catalent, in a deal expected to close toward the end of this year.

BNP Paribas SA, Deutsche Bank AG, HSBC Holdings Plc and ING Groep NV are global coordinators for the trade, joined by active bookrunners Bank of America Corp, Danske Bank A/S, Morgan Stanley, Nordea Bank Abp and Skandinaviska Enskilda Banken AB.

--With assistance from Olga Voitova.