FTC Urged to Block Novo Holdings' Acquisition of Catalent Amid Competition Concerns

U.S. consumer groups and labor unions urged the FTC to block Novo Holdings' acquisition of Catalent, citing threats to competition in weight loss drugs and gene therapies. Concerns center on Novo potentially limiting rivals' access to essential manufacturing for GLP-1 drugs, affecting companies like Amgen and Pfizer.

In a recent move, U.S. consumer groups and significant labor unions have called on the Federal Trade Commission (FTC) to prevent Novo Holdings from acquiring Catalent, a leading contract drug manufacturer. The $16.5 billion deal is said to pose a threat to competition, particularly concerning vital weight loss drugs and innovative gene therapies.

Among those raising concerns is U.S. Senator Elizabeth Warren, who urged the FTC to scrutinize the acquisition closely. The deal might limit competitors, including Amgen and Pfizer, from securing the necessary expertise and capacity to develop their GLP-1 drugs, potentially impacting the entire market landscape.

Apart from worries surrounding anti-competitive practices, concerns have also been expressed about Novo's potential influence over Catalent's gene therapy manufacturing capabilities. Currently, Catalent is engaged in contracts for producing gene therapies such as Sarepta's Elevidys and Novartis' Zolgensma, separate from factories slated for sale to Novo Nordisk.

(With inputs from agencies.)