Novo Holdings’ deliberate acquisition of Catalent is going through one other delay. Simply weeks after Novo Holdings determined to resubmit its software to the Federal Commerce Fee, the company is looking for extra details about the deal.
The transaction was initially anticipated to shut by the top of this 12 months, however this timeline will not be as strong given the repeated delays within the FTC’s evaluate course of.
The acquisition was introduced in early February when Novo Holdings — the funding arm of the muse that owns a controlling stake in Danish pharma big Novo Nordisk — disclosed its plans to accumulate New Jersey-based contract growth manufacturing group Catalent for $16.5 billion.
Catalent is without doubt one of the largest CDMOs within the life sciences area. It reported $4.2 billion in web income for the fiscal 12 months that ended June 30, 2023.
Ought to the deal shut, Novo Nordisk pays Novo Holdings $11 billion to accumulate three of Catalent’s manufacturing websites specializing in the filling of vials for sterile injectable medicine. The websites are positioned 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 medicine. Demand for Ozempic and Wegovy — two GLP-1 medicine made by Novo Nordisk — remains to be hovering, and buying these websites would considerably increase the drugmaker’s manufacturing capability.
“We’re very happy with the settlement to accumulate the three Catalent manufacturing websites which can allow us to serve considerably extra individuals residing with diabetes and weight problems sooner or later,” Novo Nordisk CEO Lars Fruergaard Jørgensen stated in a February press launch.
The primary delay within the FTC’s evaluate course of for this deal got here a month in the past when Novo Holdings withdrew and refiled its software for the deal’s approval after having “casual discussions with FTC workers.” This was achieved to “give the FTC further time to evaluate the transactions,” in response to the refiling. The resubmission triggered a 30-day extension to the FTC’s antitrust evaluate.
After which final week, the FTC requested further paperwork and knowledge from Catalent and Novo Holdings — a transfer that triggered one more 30-day extension to the company’s evaluate.
Each Novo Holdings and Catelent are gathering extra info to present the FTC “as expeditiously as attainable,” in response to a securities submitting 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 opponents 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 introduced it was planning a brand new $2.5 billion manufacturing web site in Germany to assist it meet the growing demand for its injectable diabetes and weight problems medicine.
Simply days after Novo Nordisk introduced its plans to accumulate Catalent, Eli Lilly CEO David Ricks advised the Monetary Instances that he discovered the deal “uncommon” given antitrust authorities’ growing 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 industrial and pipeline merchandise for the trade, particularly in diabetes and weight problems, and we now have merchandise with these websites as effectively,” he stated on an earnings name. “So, our focus at this time 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 stated that it’ll honor all prior buyer obligations of the three services it’s planning to accumulate. The drugmaker didn’t reply to MedCity Information’ request for extra commentary.
In a press release despatched to MedCity Information, a Catalent spokesperson stated they’re “assured within the many advantages of the transaction” and nonetheless anticipate the deal to shut earlier than the top of the 12 months.
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