The European Commission has set a December 6 deadline to decide on Novo Holdings’ proposed $16.5 billion acquisition of Catalent Inc., a major contract drug manufacturer. The acquisition, initially announced in February, reflects Novo Nordisk’s ongoing strategy to enhance the production capacity for its popular weight-loss drug, Wegovy, amid surging global demand.
According to a filing on the European Commission’s website, Novo Holdings, which is the primary shareholder of Novo Nordisk, formally requested approval from EU antitrust regulators on October 31. The regulatory body now faces a critical decision: it can either approve the deal outright, with or without conditions, or open an in-depth, four-month investigation if significant antitrust concerns emerge.
Catalent and Novo Nordisk maintain that the acquisition process is moving forward as planned, with all parties expecting the deal to close by the end of 2024, pending regulatory clearance. “We are adhering to all regulatory procedures required for this transaction,” Novo Holdings confirmed in a statement to Reuters, while Catalent similarly expressed confidence in completing the transaction within the anticipated timeframe.
This acquisition, however, has drawn scrutiny from several stakeholders in the pharmaceutical industry. Last month, Swiss pharmaceutical giant Roche voiced opposition to the merger, citing concerns over potential competitive impacts within the weight-loss drug market—a rapidly growing industry with significant commercial stakes. Eli Lilly, one of Novo Nordisk’s main competitors in obesity and diabetes treatments, also raised concerns regarding the competitive landscape that could result from this acquisition.
On the other side of the Atlantic, the U.S. Federal Trade Commission (FTC) requested additional information about the deal in May, signaling heightened interest in its potential market implications. Although the FTC has not released further updates on its investigation, the deal has come under fire from U.S. consumer advocacy groups and policymakers alike. U.S. Senator Elizabeth Warren has urged the FTC to examine the acquisition closely, citing potential threats to market fairness in obesity treatment options. Consumer advocates argue that allowing the merger could solidify Novo Nordisk’s dominant position in the weight-loss drug sector, potentially limiting competition and driving up costs.
The EU regulators’ upcoming decision could set a precedent for how large-scale acquisitions are managed in high-demand sectors like obesity treatment. As Novo Nordisk and Catalent press forward, the resolution of regulatory inquiries in both the EU and the U.S. will be instrumental in determining the future landscape of this booming industry.
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