FTC Urged to Block Novo Holdings' Catalent Acquisition Amid Competition Concerns
U.S. consumer groups and labor unions are urging the FTC to block Novo Holdings' acquisition of Catalent. They argue it could stifle competition for weight loss drugs and gene therapies, affecting companies like Amgen and Pfizer. Concerns extend to potential impacts on Catalent's gene therapy manufacturing capacity.
U.S. consumer groups and labor unions have called on the Federal Trade Commission (FTC) to prevent Novo Holdings from acquiring Catalent, citing threats to competition in the weight loss drug and gene therapy markets. The $16.5 billion deal has sparked concerns over limited market options for major players like Amgen and Pfizer.
Senator Elizabeth Warren has also highlighted potential market constraints, voicing worries that future competitors may struggle to launch their GLP-1 drugs. Companies like Viking Therapeutics and Structure Therapeutics could be impacted. Novo Holdings maintains that the acquisition will enhance Catalent's delivery capabilities.
The acquisition terms include selling three Catalent factories to Novo Nordisk for $11 billion. With ongoing discussions with the FTC and EU regulators, Novo Nordisk aims to close by year-end. Consumer groups remain worried about Catalent's ability to manufacture gene therapies amid these changes.
(With inputs from agencies.)
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