Novo Nordisk Ventures Enters Healthium Medtech Race

Novo Holdings, which holds a controlling stake in Denmark's diabetes and obesity drug manufacturer, Novo Nordisk, is reportedly bidding for Healthium Medtech, India's leading producer of surgical sutures and surgical needles. 

According to sources, Novo Holdings' entry has intensified the race for Healthium, which is currently 99.8% owned by Apax Partners. 

The bidding process has already shortlisted several well-known buyout funds, including KKR, Hillhouse, EQT, Blackstone, and TA Associates. Healthium has been valued at Rs 6,500-7,000 crore by rival bidders, and due diligence for the company is currently underway.

Novo Holdings, a Danish investment firm, manages the holdings of the Novo Nordisk Foundation, which is the world's largest philanthropic organization. Novo Holdings' influence and financial strength stem from its 28% stake in, and 77% of voting shares of, Novo Nordisk. Additionally, it is the controlling shareholder of Novo Enzymes, a manufacturer of industrial enzymes.

Novo Nordisk's recent success with its blockbuster weight loss drug has propelled its sales and boosted its market capitalization to over $500 billion. As a result, Novo Holdings' confidence has grown, enabling it to plan annually until 2030. Dividend payments from the company's diabetes drug, Ozempic, and weight loss treatment, Wegovy, continue to bolster its coffers.

Last year, Novo Holdings' assets under management reached $163 billion, with a portfolio of 170 companies. Its primary investments are in life sciences and capital investments, including equities, bonds, real estate, and infrastructure, as well as its holdings in Novo Nordisk and Novo Enzymes.

Despite competition from Eli Lilly, industry analysts expect the diabetes and weight loss category to be worth $100 billion by 2030, with strong demand forecasts for Ozempic and Wegovy.