Novo Holdings has acquired Catalent for $16.5 billion in cash, a move that increased Catalent's shares by 10%.

The acquisition price is a 16.5% premium over Catalent's stock price before the announcement.

Novo Nordisk will also buy three Catalent manufacturing sites for $11 billion to boost drug production capacity.

The pharmaceutical industry is witnessing a surge in acquisitions, driven by cash flow, low debt, and the need for growth.

The acquisition is part of a strategic push to meet rising demand for weight loss and diabetes treatments.

Completion of the Novo-Catalent deal is anticipated by year's end, subject to shareholder and regulatory approval.