Consumer and Labor Unions Oppose Novo's Catalent Acquisition

U.S. consumer groups and labor unions have called on the Federal Trade Commission to block Novo Holdings from acquiring Catalent, a contract drug manufacturer. Concerns focus on competition in weight-loss drugs and gene therapies. Novo Holdings argues the deal will enhance consumer benefits.

In a significant move raising competition concerns, U.S. consumer groups and major labor unions have petitioned the Federal Trade Commission to halt Novo Holdings' proposed acquisition of contract drug manufacturer Catalent. They argue the $16.5 billion deal could jeopardize competition in the markets for weight-loss drugs and innovative gene therapies.

Fueling the apprehension, U.S. Senator Elizabeth Warren has also urged the FTC to critically assess the acquisition, suggesting it may limit choices for competitors developing GLP-1 drugs. These include pharmaceutical giants like Amgen, Pfizer, Roche, and AstraZeneca, according to the groups.

Novo Holdings, however, maintains that the acquisition is pro-competitive and will deliver significant benefits to consumers and local communities. Nonetheless, the controversy continues as Novo plans to sell three Catalent factories to Novo Nordisk for $11 billion, ensuring the deal complies with regulatory expectations.

(With inputs from agencies.)