Several U.S. consumer groups and major unions have urged the Federal Trade Commission (FTC) to block Novo Holdings' acquisition of contract drug manufacturer Catalent Inc. (CTLT) due to potential threats to competition in the weight-loss drug and advanced gene therapy sectors. The $16.5 billion deal has sparked concerns among organizations like the U.S. Public Interest Research Group and the Service Employees International Union, who highlighted the possible impact on the supply of Novo Nordisk's (NVO, Financial) GLP-1 weight-loss injection, Wegovy.
The acquisition might limit options for competitors such as Amgen (AMGN), Pfizer (PFE), Roche (RHHBY), and AstraZeneca (AZN), all reportedly developing their own GLP-1 drugs. The deal raises questions about whether these competitors will have the expertise and manufacturing capacity needed to bring their products to market. Other companies working on GLP-1 therapies, including Viking Therapeutics (VKTX), Structure Therapeutics (GPCR), and Fosun Pharma, might also be affected.
Novo Holdings agreed to acquire Catalent for $16.5 billion, with Novo Nordisk purchasing three sterile filling factories for $11 billion. These facilities are expected to increase Novo Nordisk's filling capacity starting in 2026. Novo Nordisk stated its commitment to the existing contracts at these factories and denied any knowledge of competitive GLP-1 products being manufactured there.
Concerns also extend to Catalent’s gene therapy production capabilities, with various non-profit organizations and councils voicing their apprehension. Antitrust lawyer David Balto, representing these groups, emphasized the broader implications for future therapies, including gene therapies.
Catalent's agreements, such as the gene therapy production contract with Sarepta Therapeutics (SRPT) and Novartis (NVS), were mentioned but are unrelated to the factories involved in the Novo Holdings deal. Sarepta expects no impact from the acquisition, and its contract with Catalent runs until 2028. Novartis no longer uses any Catalent facility for Zolgensma production.
