Novo Holdings, the investment arm controlling obesity drugmaker Novo Nordisk, has fully exited its stake in ConvaTec, the British medical products company, through a discounted share sale. The divestment marks the end of Novo’s long-standing investment in the firm, which began in 2017 and included board representation until 2023.

The sale comprised approximately 155 million shares at 227 pence per share, representing a 5.1% discount on ConvaTec’s Monday closing price of 239.2 pence. The transaction raised around £351 million ($461 million), according to the bookrunner managing the offering.

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ConvaTec Shares Drop Following Sale

ConvaTec shares fell more than 3% in early trading following the announcement, making them one of the largest decliners on Britain’s FTSE 100 index. Investors reacted to Novo Holdings’ exit, reflecting the significance of the firm as ConvaTec’s largest shareholder prior to the sale.

Novo first invested in ConvaTec in 2017, gaining board representation and a strategic role in the company’s growth. However, in 2023, the boardroom arrangement ended after Novo expressed confidence in ConvaTec’s management and cited business momentum as a reason to reduce its involvement.

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Full Exit From ConvaTec

The recent offering completes Novo Holdings’ divestment, following previous sales executed through derivative transactions with hedge counterparties. “Following settlement of the offering, Novo Holdings will have fully exited its position,” the bookrunner confirmed.

This exit comes shortly after ConvaTec projected double-digit profit growth in 2026, fueled by the launch of new products such as advanced wound dressings and increased demand across key global markets. Despite the strong outlook, the share sale’s discounted pricing contributed to the initial decline in stock value.

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Implications for Investors and ConvaTec

Novo Holdings’ exit reflects broader trends in healthcare and investment strategies, where large institutional shareholders periodically divest holdings to free up capital or rebalance portfolios. For ConvaTec, the company now moves forward without its previous largest shareholder but retains confidence in management and its growth trajectory.

Analysts noted that while the short-term share price reacted to the sale, ConvaTec’s fundamental business prospects remain strong, with continued product launches and international market expansion expected to drive performance in 2026 and beyond.