Editors' (re)View: Warren asks FTC to step in on Novo, Catalent merger
Warren asks FTC to step in on Novo, Catalent merger
Senator Elizabeth Warren made a plea this week for the Federal Trade Commission (FTC) to investigate Novo Nordisk’s $16.5 billion acquisition of Catalent. But her letter touches on a broader issue of pharmaceutical mergers raising eyebrows.
This isn’t the first time the FTC has been asked to step in. In recent years, the agency has become increasingly involved in blocking or altering pharmaceutical mergers that could threaten competition. Recently, the FTC challenged Amgen’s acquisition of Horizon Therapeutics in 2023, filing a lawsuit to block the $27.8 billion deal.
The FTC argued that Amgen could use its market power to pressure insurers and pharmacy benefit managers into favoring Horizon’s rare disease treatments, particularly its thyroid eye disease and chronic gout medications. The concern was that Amgen might leverage rebates and bundling practices to stifle competition, which would drive up prices and reduce options for patients.
While the FTC’s challenge initially signaled a tougher stance on pharma mergers, the case ultimately ended in a settlement that allowed the merger to proceed under strict conditions. Amgen agreed not to bundle Horizon’s drugs with its own products, among other concessions designed to protect competition.
And pharma is fighting back. Last year, over 30 life sciences organizations formed the Partnership for the U.S. Life Science Ecosystem (PULSE) to defend pharmaceutical M&A. The coalition argues that mergers foster innovation by providing companies with the resources and infrastructure needed to bring new therapies to market. PULSE contends that consolidation concerns in biopharma are overstated and that M&A supports research and development.
More recently, in July of last year, the DOJ and FTC released new draft merger guidelines, increasing the disclosure requirements and costs for companies seeking merger approvals, making the process more complex for the pharmaceutical industry.
But Warren’s concerns about the Novo Nordisk-Catalent merger center on the control it would give Novo Nordisk over its biggest competitor, Eli Lilly. Catalent, after all, manufactures for both companies, and Warren argues that giving Novo Nordisk insight into its competitor’s production capabilities could lead to less competition and higher prices for life-saving drugs.
The stakes are high. As Warren points out, the price of GLP-1 drugs like Ozempic is already ten times higher in the U.S. than in countries like the U.K. For many American patients, accessing these medications is financially out of reach. And with rising rates of diabetes and obesity, the issue becomes not just about market control but patient access to medications. — Andrea Corona
