Consumer, labor groups urge FTC to block Catalent sale to Novo Holdings

A coalition of unions, client teams and public curiosity organizations urged the Federal Commerce Fee to problem a $16.5 billion deal during which Novo Nordisk’s guardian basis would purchase Catalent, a number one contract drug producer, over considerations the acquisition will hurt competitors and scale back affected person entry to widespread diabetes and weight reduction medicines.

In a letter despatched Thursday, the coalition famous that Novo is the market chief in gross sales of so-called GLP-1 medication with roughly a 54% share of the North American market. On the identical time, Catalent is among the “only a few” contract drug producers that gives specialised growth and manufacturing companies to corporations that promote these medicines.

If the deal had been to undergo, “Novo would have the flexibility and incentive to foreclose its present and future GLP-1 rivals from acquiring entry to Catalent websites and to in any other case drawback present and future GLP-1 rivals in favor of Novo’s personal merchandise,” the coalition wrote. Eli Lilly, a chief Novo rival, makes use of Catalent for filling and packaging, and has complained brazenly in regards to the deal.