EU to rule on Novo’s $16.5B Catalent takeover

Nov. 4, 2024

As reported by Reuters this week, the European Union’s antitrust regulators are set to rule by Dec. 6 on Novo Holdings’ $16.5 billion acquisition of contract drug manufacturer Catalent. 

Novo Holdings, which controls the Danish pharmaceutical giant Novo Nordisk, requested EU approval for the deal on Oct. 31.

The regulators can approve the acquisition outright, approve it with conditions, or initiate a full investigation if they identify potential competition concerns. This acquisition comes as Novo Nordisk aims to ramp up production of its high-demand obesity drug, Wegovy, which has led to supply shortages due to its rapid rise in popularity.

The proposed acquisition has stirred concerns among competitors and regulators alike. In the U.S., consumer advocacy groups and U.S. Senator Elizabeth Warren have urged the Federal Trade Commission (FTC) to closely examine the acquisition's implications, with Warren citing a potential “unlawful advantage” for Novo in obesity drugs.