Novo Holdings’ deliberate acquisition of Catalent is dealing with one other delay. Simply weeks after Novo Holdings determined to resubmit its utility to the Federal Commerce Fee, the company is in search of extra details about the deal.
The transaction was initially anticipated to shut by the tip of this yr, however this timeline is probably not as stable given the repeated delays within the FTC’s overview course of.
The acquisition was announced in early February when Novo Holdings — the funding arm of the muse that owns a controlling stake in Danish pharma large Novo Nordisk — disclosed its plans to accumulate New Jersey-based contract improvement manufacturing group Catalent for $16.5 billion.
Catalent is without doubt one of the largest CDMOs within the life sciences subject. It reported $4.2 billion in web income for the fiscal yr that ended June 30, 2023.
Ought to the deal shut, Novo Nordisk pays Novo Holdings $11 billion to acquire three of Catalent’s manufacturing sites specializing in the filling of vials for sterile injectable medication. The websites are situated in Belgium, Italy and Indiana.
These websites have already got ongoing relationships with Novo Nordisk as a part of the drugmaker’s world manufacturing infrastructure for its GLP-1 agonist medication. Demand for Ozempic and Wegovy — two GLP-1 medication made by Novo Nordisk — is still soaring, and buying these websites would considerably enhance the drugmaker’s manufacturing capability.
“We’re more than happy with the settlement to accumulate the three Catalent manufacturing websites which can allow us to serve considerably extra individuals dwelling with diabetes and weight problems sooner or later,” Novo Nordisk CEO Lars Fruergaard Jørgensen mentioned in a February press release.
The primary delay within the FTC’s overview course of for this deal got here a month in the past when Novo Holdings withdrew and refiled its utility for the deal’s approval after having “casual discussions with FTC workers.” This was finished to “give the FTC extra time to overview the transactions,” based on the refiling. The resubmission triggered a 30-day extension to the FTC’s antitrust overview.
After which final week, the FTC requested extra paperwork and data from Catalent and Novo Holdings — a transfer that triggered yet one more 30-day extension to the company’s overview.
Each Novo Holdings and Catelent are gathering extra info to offer the FTC “as expeditiously as doable,” based on a securities filing from Catalent.
Eli Lilly is probably the most distinguished voice questioning the proposed acquisition, which comes as no shock contemplating the drugmaker is Novo Nordisk’s chief competitor within the GLP-1 area. Eli Lilly’s Mounjaro and Zepbound are direct rivals to Novo Nordisk’s Ozempic and Wegovy.
Equally to Novo Nordisk, Eli Lilly has additionally been having bother maintaining with the skyrocketing demand for GLP-1 drugs. In November, the drugmaker announced it was planning a brand new $2.5 billion manufacturing website in Germany to assist it meet the rising demand for its injectable diabetes and weight problems medication.
Simply days after Novo Nordisk introduced its plans to accumulate Catalent, Eli Lilly CEO David Ricks told the Monetary Instances that he discovered the deal “uncommon” given antitrust authorities’ rising scrutiny for mergers within the biopharma area.
Additionally simply days after the deal was introduced, Eli Lilly CFO Anat Ashkenazi expressed concern about how the acquisition would affect his firm’s excellent contracts with Catalent.
“Catalent is an integral half or producer of each business and pipeline merchandise for the trade, particularly in diabetes and weight problems, and we’ve got merchandise with these websites as nicely,” he mentioned on an earnings call. “So, our focus right this moment is on making certain that continuity of provide of medication for sufferers is uninterrupted, in addition to we intend on holding Catalent accountable to their contract with us.”
Novo Nordisk has mentioned that it’s going to honor all prior buyer obligations of the three amenities it’s planning to accumulate.
In statements despatched to MedCity Information, spokespeople for each Novo Nordisk and Catalent mentioned they nonetheless anticipate the deal to shut earlier than the tip of the yr.
Photograph: illustration, Getty Photos
