Concerns Mount Over Novo Holdings' Quest for Catalent

Consumer groups, labor unions, and Senator Elizabeth Warren have urged the FTC to block Novo Holdings from acquiring Catalent. Concerns center on competition in weight loss drugs and gene therapies. The $16.5 billion deal could impact rivals' ability to develop GLP-1 drugs and produce gene therapies.

U.S. consumer groups and major labor unions have raised alarms over Novo Holdings' proposed acquisition of Catalent, a contract drug manufacturer. They appealed to the Federal Trade Commission (FTC) to prevent the deal, citing threats to competition in both weight loss drugs and emerging gene therapies worth $16.5 billion.

This acquisition has drawn scrutiny from key figures including U.S. Senator Elizabeth Warren, who expressed concerns about restricting competitors like Amgen, Pfizer, Roche, and AstraZeneca from developing their own GLP-1 drugs. The ability of companies like Viking Therapeutics to market these drugs could be compromised by the merger.

Despite Novo Nordisk's reassurances about honoring existing Catalent contracts, groups like U.S. Public Interest Research Group and SEIU warned that the acquisition could affect Catalent's capabilities in manufacturing gene therapies. The potential impact on Catalent's contracts with Sarepta Therapeutics and Novartis was also highlighted.

(With inputs from agencies.)