US FTC Inquires into Novo Nordisk’s Parent Company Catalent

The U.S. Federal Trade Commission (FTC) has requested further information regarding Novo Nordisk’s parent’s proposed $16.5 billion acquisition of contract drug manufacturer Catalent, following a resubmission of the deal for approval.

Catalent confirmed on Friday that both companies are in the process of collecting information to address the FTC’s inquiry, which was received on May 2.

In February, Novo Holdings announced its intention to acquire Catalent, aiming to enhance the production capacity of the popular weight-loss drug Wegovy.

As part of the agreement, Novo Nordisk would purchase three of Catalent’s fill-finish sites for $11 billion.

FTC Investigation on Ozempic (Credits: Lee Smith)

Acquiring access to these Catalent sites would be advantageous for Novo Nordisk, as it seeks to ramp up the production of Wegovy to meet growing demand.

David Ricks, CEO of Eli Lilly, Novo’s main competitor in the obesity market, expressed concerns about Novo’s proposal to purchase the plants, describing it as “unusual” and highlighting potential antitrust issues.

Lilly manufactures the weight-loss drug Zepbound and the related diabetes treatment Mounjaro.

Novo Nordisk (Credits: JHVEPhoto)

Despite the FTC’s additional information request, both Catalent and Novo Holdings, the parent company of the Wegovy producer, remain confident in closing the deal by the end of 2024.

However, the refiling of the approval application in April has raised doubts about whether the transaction will be completed within the expected timeframe.

Novo Nordisk did not disclose the reasons for the refiling of the application. Novo Holdings serves as the investment arm of Novo Nordisk’s controlling shareholder, the Novo Nordisk Foundation.

Josh Alba
Josh Alba
Josh Alba stands at the forefront of contemporary business journalism, his words weaving narratives that illuminate the intricate workings of the corporate world. With a keen eye for detail and a penchant for uncovering the underlying stories behind financial trends, Josh has established himself as a trusted authority in business writing. Drawing from his wealth of experience and relentless pursuit of truth, Josh delivers insights that resonate with readers across industries.
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