Consumer groups ask FTC to block Novo Holdings-Catalent deal
Business
Consumer groups ask FTC to block Novo Holdings-Catalent deal
NEW YORK (Reuters) - US consumer groups and two large labor unions urged the US Federal Trade Commission on Thursday to block Novo Holdings, the controlling shareholder of Novo Nordisk from acquiring contract drug manufacturer Catalent saying the deal threatens competition in weight loss drugs and cutting-edge gene therapies.
US Public Interest Research Group, Service Employees International Union (SEIU) and others expressed concerns in a letter to the FTC about the $16.5 billion deal, which Novo Holdings has said would boost supply of Wegovy, Novo's blockbuster GLP-1 injectable weight-loss drug.
Last week, US Senator Elizabeth Warren, a Democrat, called on the FTC to look closely at the deal over similar concerns.
Novo Holdings, in a statement to Reuters on Friday in response to the consumer groups' letter, said: "We remain confident in the pro-competitive rationale for this transaction and are committed to realizing the benefits it will bring to customers, and patients, and the local communities which Catalent now serves."
A Catalent spokesperson reiterated the company's position on the deal in a statement on Friday to Reuters in response to the letter: "Novo Holdings’ pending acquisition of Catalent will further strengthen Catalent’s ability to deliver better outcomes for our customers and the patients they serve."
