The constraints on the supply of Novo Nordisk’s (NVO) popular weight loss therapy, Wegovy, are expected to diminish following the announcement of a $16.5B deal between the company’s parent, Novo Holdings, and U.S. contract manufacturer Catalent (NYSE:CTLT).

After the upcoming all-cash deal is finalized later this year, Novo (NVO) will acquire three CTLT fill-finish sites situated in Anagni, Italy, Bloomington, Indiana, and Brussels, Belgium, from Novo Holdings, the owner of around 77% of the Danish drugmaker’s voting shares.

The transaction is projected to help the company expand its filling capacity gradually by 2026, as reported by Novo (OTCPK:NONOF). Last week, Novo posted better-than-expected revenue for 2023, buoyed by its diabetes and obesity franchise led by GLP-1 receptor agonists Ozempic and Wegovy.

The filling capacity is “a key strategic consideration for Novo Nordisk, particularly when… making sure there is broader rollout for Ozempic and Wegovy,” said Kasim Kutay, CEO of Novo Holdings, during an interview with Reuters.

Thermo Fisher Scientific (TMO), which Novo (NVO) has contracted to fill-finish Wegovy, experienced a lower opening after the announcement, while Catalent’s (CTLT) European rival, Lonza (OTCPK:LZAGF) (OTCPK:LZAGY), traded higher.

The deal is unlikely to draw regulatory scrutiny since Novo Holdings is only selling three locations from CTLT’s global manufacturing network, which consists of approximately 50 sites, according to a source cited by Reuters.

The division of assets between NVO and its parent should also alleviate regulatory concerns about a potential impact on Catalent’s (CTLT) other clients. “Novo Nordisk will ensure an ordinary transition and will make sure that all the customers will continue to be taken care of,” the source added.