Consumer Groups and Unions Urge FTC to Block Novo Holdings Acquisition of Catalent

Consumer groups and labor unions have urged the U.S. Federal Trade Commission to block Novo Holdings' acquisition of Catalent, citing potential threats to competition in weight loss drugs and gene therapies. Concerns arise about limiting rivals like Amgen and Pfizer in developing GLP-1 treatments.

U.S. consumer groups and major labor unions have called on the Federal Trade Commission to prevent Novo Holdings from acquiring contract drug manufacturer Catalent. The coalition argues that the $16.5 billion deal endangers market competition for weight loss drugs and innovative gene therapies.

Last week, U.S. Senator Elizabeth Warren voiced similar concerns, warning the deal could restrict competitors such as Amgen, Pfizer, and others. The proposed acquisition raises doubts about whether future rivals will access the expertise needed for product development and manufacturing.

Novo Holdings' plans include selling three Catalent factories to Novo Nordisk. Consumer groups fear the ownership change may affect Catalent's ability to produce vital gene therapies, as highlighted in contracts with Sarepta Therapeutics and Novartis. Both companies have issued statements regarding the acquisition's impact.

(With inputs from agencies.)