Novo Holdings’ $16.5B Catalent acquisition fulfills all regulatory closing conditions
Novo Holdings has secured approval from the U.S. Federal Trade Commission for its proposed $16.5 billion acquisition of contract development and manufacturing organization Catalent, fulfilling all regulatory closing conditions for the transaction a week after getting the go-ahead from the European Commission.
In a Saturday announcement, Novo Holdings and Catalent said they expect to close the pending transaction in the coming days.
“With the support of Novo Holdings and access to additional resources, Catalent will be well-positioned to drive innovation and enhance offerings for the benefit of customers and the patients they serve, ultimately accelerating our strategy to create value for stakeholders,” Catalent CEO Alessandro Maselli said in a statement.
The FTC’s clearance follows an extended review of the Novo Holdings-Catalent transaction by U.S. regulators, who earlier this year made a “second request” for additional information and documentary materials.
In a separate but related transaction announced earlier this year, Novo Nordisk agreed to pay Novo Holdings $11 billion to take over three Catalent fill-finish sites in Italy, Belgium and Indiana to help expand production of its blockbuster GLP-1 drugs Ozempic and Wegovy.
Eli Lilly CEO Dave Ricks in a second-quarter 2024 earnings call in August said his company relies on “one of the Catalent sites for GLP-1 and other diabetes production” and has “aired those concerns publicly and privately since the proposed transaction was announced.”
In October, Sen. Elizabeth Warren (D-Mass.) sent a letter to FTC Chair Lina Khan expressing her concerns that the Novo-Catalent deal “could increase Novo Nordisk’s dominance over vital GLP-1 inhibitor drugs, reducing competition.”
However, Novo Nordisk has repeatedly said it will “honor all customer obligations at the three Catalent sites” it intends to acquire from Novo Holdings.
Lilly and Novo Nordisk have both been investing billions of dollars to ramp up their manufacturing capabilities in an attempt to keep up with the unprecedented demand for their respective type 2 diabetes and obesity drugs.