A coalition of unions, shopper teams, and public curiosity organizations has written to Lina Khan, Chair of the Federal Commerce Fee (FTC), voicing sturdy opposition to Novo Holdings’ proposed $16.5 billion acquisition of Catalent Inc. CTLT.
The teams argue that the deal, which might unite the Danish pharmaceutical large and dominant participant in GLP-1 drug growth, Novo Nordisk A/S NVO, with Catalent, a number one world contract growth and manufacturing group (CDMO), might hurt competitors in crucial areas akin to diabetes, weight problems remedies, and gene therapies.
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The letter outlines issues that the acquisition might result in “vertical foreclosures,” limiting entry for Novo’s present and future rivals in GLP-1 medication and gene therapies.
Catalent, with its 50 world amenities, has been an trade chief in manufacturing GLP-1 medication, together with Novo’s personal Ozempic and Wegovy.
Since 2017, Catalent has been one of many few CDMOs able to offering the specialised fill-finish growth and manufacturing companies important for GLP-1 therapies.
By buying Catalent, Novo would have the ability and incentive to limit different pharmaceutical firms from accessing these very important companies, probably diminishing competitors on this crucial drug class.
The letter additionally highlights Catalent’s significance in gene remedy manufacturing, significantly in producing remedies like Sarepta Therapeutics Inc’s SRPT Elevidys and Novartis AG’s NVS Zolgensma.
A lot of Catalent’s amenities give attention to cell and gene therapies, and the coalition believes that Novo’s acquisition might disrupt the manufacturing and growth of those remedies.
In abstract, the coalition argues that retaining Catalent impartial is important for fostering innovation and sustaining competitors within the pharmaceutical trade.
An impartial Catalent would assist future opponents to Novo in each GLP-1 medication and gene therapies, making certain that sufferers proceed to have entry to life-saving remedies with out market limitations pushed by consolidation.
Final week, United States Senator Elizabeth Warren wrote a letter to FTC’s Lina Khan, urging her to analyze the deal completely, amid rising issues about potential antitrust violations.
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