Convatec slumps on Novo Holdings exit

(Sharecast News) - Convatec slumped on Tuesday after Novo Holdings - which had been its largest shareholder - exited its position in the medical technology firm via a placing of 155m shares. The shares, which represent a stake of about 7.8%, were sold to institutional investors at 227p each, raising gross proceeds of approximately £351m. The price was a 5.1% discount to the closing share price on Monday.

Goldman Sachs and Morgan Stanley acted as joint global coordinators in connection with the offering.

Novo Holdings, a holding and investment company responsible for managing the assets and the wealth of the Novo Nordisk Foundation, said it had monetised all other previously held shares ahead of the placing via derivative transactions with hedge counterparties.

At 1440 GMT, Convatec shares were down 2.8% at 232.60p.

Broker Peel Hunt, which has an 'add' rating on Convatec, said: "We do not believe that too much should be read into this.

"Novo Nordisk has a new CEO in seat (Mike Doustdar, since August 2025) who is clearly trying to shake up the fortunes of the obesity player, and Novo Holdings has changed leadership too with Lars Green succeeding Lars Rebien Sørensen as chair and Britt Meelby Jensen becoming vice chair (effective November 2025).

"Following the failed bid for Metsera this month (Pfizer's $10bn bid was preferred to Novo's), Novo announced yesterday that it would immediately drop its cash price for Ozempic and Wegovy to $349 per month, more than six weeks before Eli Lilly's rival weight loss drug Zepbound is expected to match that price in the US.

"This monetisation event with Convatec shares could be a counterbalance to the 'cost' of doing this and/or part of the restructuring effort of Novo Holdings."