Novo Nordisk issues bonds for the first time in two years to raise funds for expansion

According to the information obtained from the Zhitong Finance and Economics APP, Novo Nordisk (NVO.US) plans to issue bonds for the first time in more than two years to provide funding for its large-scale project to expand the production of its best-selling drugs. A source familiar with the matter revealed that Novo Nordisk has authorized banks through its Dutch financial subsidiary to help issue benchmark euro bonds with maturities ranging from 2 to 10 years, depending on market conditions. The source added that the proceeds will be used for general corporate purposes, including providing funding for the acquisition of Catalent. It is reported that Novo Nordisk is making significant investments in its existing and new production facilities. The company announced in February this year that it will acquire the U.S. pharmaceutical company Catalent in an all-cash transaction worth $11.5 billion. Through this acquisition, Novo Nordisk will gain access to three filling factories owned by Catalent, allowing it to serve more diabetes and obesity patients in the future. The transaction is expected to be completed by the end of this year. Boosted by increased demand for the diabetes drug Ozempic and the weight-loss drug Wegovy, Novo Nordisk raised its guidance for 2024 performance earlier this month. The company expects sales in 2024 to increase by 27% and operating profit to increase by 30%. As of the time of writing, Novo Nordisk's pre-market trading in the U.S. stock market on Monday rose by over 2%