Novo Holdings’ deliberate acquisition of Catalent is dealing with one other delay. Simply weeks after Novo Holdings determined to resubmit its software 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 top of this yr, however this timeline might not be as strong given the repeated delays within the FTC’s assessment 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 amass 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 discipline. It reported $4.2 billion in internet income for the fiscal yr that ended June 30, 2023.
Ought to the deal shut, Novo Nordisk can pay Novo Holdings $11 billion to amass three of Catalent’s manufacturing websites focusing on 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 international manufacturing infrastructure for its GLP-1 agonist medication. Demand for Ozempic and Wegovy — two GLP-1 medication made by Novo Nordisk — continues to be hovering, and buying these websites would considerably enhance the drugmaker’s manufacturing capability.
“We’re very happy with the settlement to amass the three Catalent manufacturing websites which is able to allow us to serve considerably extra folks residing with diabetes and weight problems sooner or later,” Novo Nordisk CEO Lars Fruergaard Jørgensen mentioned in a February press launch.
The primary delay within the FTC’s assessment 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 accomplished to “give the FTC further time to assessment the transactions,” in response to the refiling. The resubmission triggered a 30-day extension to the FTC’s antitrust assessment.
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 assessment.
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 essentially 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 hassle maintaining with the skyrocketing demand for GLP-1 medicines. 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 medication.
Simply days after Novo Nordisk introduced its plans to amass Catalent, Eli Lilly CEO David Ricks advised the Monetary Occasions 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 impression 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 now we have merchandise with these websites as properly,” he mentioned on an earnings name. “So, our focus as we speak is on making certain that continuity of provide of drugs 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 amass. The drugmaker didn’t reply to MedCity Information’ request for added commentary.
In an announcement despatched to MedCity Information, a Catalent spokesperson mentioned they’re “assured within the many advantages of the transaction” and nonetheless count on the deal to shut earlier than the top of the yr.
Picture: illustration, Getty Photos
