Several U.S. consumer groups and labor unions have asked the FTC to block Novo Holdings planned $16.5 bn acquisition of Catalent, amidst concerns that the potential deal could stifle competition in the market for GLP-1 receptor agonist drugs.

The groups argue that the acquisition would further solidify Novo Nordisk's leading position - dominated by Ozempic and Wegovy – and that this could potentially lead to higher prices and reduced access to these critical medications. They also contend that the deal could give Novo Nordisk control over Catalent's production facilities, and thus limit its rivals' ability to manufacture competing drugs. The move comes amid growing scrutiny from lawmakers - including the U.S. Senator Elizabeth Warren - who has also raised concerns about the merger’s potential to reduce competition. Senator Warren has asked the FTC to closely investigate the deal.

Although it stressed it was not itself affected, Swiss drugmaker Roche has also come out against the deal, with CEO Thomas Schinecker suggesting authorities should block the takeover because it could hit competition in the booming weight-loss drug industry.

Separately, Catalent agreed to sell two of its small molecule facilities to other CDMOs.

Pace Life Sciences announced earlier this month that it had acquired Catalent’s small molecule analytical laboratories in Research Triangle Park, North Carolina, adding that the acquisition strengthens its ability to provide comprehensive analytical services for early-stage drug development through to commercialization, expands its U.S. network, and enhances its ability to support clients with faster and more reliable solutions.

Separately, Catalent announced that it has entered into a definitive agreement to sell its oral solids development and small-scale manufacturing facility in Somerset, New Jersey, to global CDMO and nanomedicine developer, Ardena. The site, which serves as Catalent’s headquarters and the company describes as its center of excellence for hot melt extrusion technology, will be repurposed by Ardena to expand its early-phase development offerings and provide a broader range of clinical and commercial pharmaceutical development services.

Seeking to assure stakeholders by publishing an open letter to its customers, Catalent’s Alessandro Maselli, appeared confident that the deal would go ahead and announced that he would remain president and CEO post-close, and that, “following the closing of its transaction, as a private company under Novo Holdings’ ownership, Catalent will continue to operate as a leading global, independent, full-service CDMO.”

For more, please find the original story source here.