US Unions Urge FTC to Block Novo Holdings-Catalent Deal Amid Competition Concerns

Consumer groups and labor unions have asked the FTC to block Novo Holdings' acquisition of Catalent due to competition concerns in the weight loss drug and gene therapy markets. The $16.5 billion deal could impact rivals like Amgen and Pfizer in the GLP-1 drug development field.

U.S. consumer groups and two major labor unions called upon the Federal Trade Commission to intervene in Novo Holdings' planned acquisition of Catalent, citing competitive risks in the burgeoning markets of weight loss drugs and advanced gene therapies. The potential $16.5 billion transaction has spurred concern among industry watchers and stakeholders regarding its implications for the competitive landscape.

Spearheaded by the U.S. Public Interest Research Group and the Service Employees International Union, alongside other influential organizations, the plea is backed by concerns articulated in a formal letter to the FTC. The acquisition, they argue, threatens to squeeze out competitors like Amgen, Pfizer, Roche, and AstraZeneca in the rapidly evolving GLP-1 drug sector.

While some companies, such as Roche, have expressed confidence in managing their supply chains independently, others remain silent. The proposed sale, involving Catalent's critical manufacturing sites, adds another layer of complexity, drawing sharp focus on potential effects across pharmaceutical and therapeutic landscapes.

(With inputs from agencies.)