FTC Urged to Block Novo's Acquisition of Catalent Over Competition Concerns

Consumer groups and labor unions urged the U.S. FTC to block Novo Holdings' $16.5 billion acquisition of Catalent, warning it may stifle competition in weight loss drugs and gene therapies. Concerns include limited manufacturing options for GLP-1 rivals. The deal involves the sale of Catalent's factories.

Consumer groups and labor unions are pressing the U.S. Federal Trade Commission to halt Novo Holdings' acquisition of contract drug manufacturer Catalent, citing potential threats to competition in the markets for weight-loss drugs and gene therapies.

The $16.5 billion deal, which aims to bolster the supply of Wegovy, threatens to squeeze out rival drug-makers like Amgen, Pfizer, and others developing GLP-1 therapies, according to a letter sent to the FTC. The broad competition concerns have also drawn Senator Elizabeth Warren's attention.

While Novo Holdings plans to sell three Catalent factories to Novo Nordisk as part of the deal, critics fear limited manufacturing capacity could affect both current and future competitors in these medical fields.

(With inputs from agencies.)