European Union (EU) regulators are expected to deliver a decision by December 6 on whether to approve Novo Holdings’ proposed acquisition of Catalent, a contract drug manufacturer, according to information on the European Commission’s website. This regulatory review comes following a formal request for EU clearance filed by Novo Holdings, the primary shareholder of the pharmaceutical giant Novo Nordisk, on October 31.
The EU antitrust authorities now face several possible courses of action. They could approve the acquisition outright, require remedies, or, if they identify significant competition concerns, initiate an extensive four-month investigation. This acquisition, which was initially announced in February, reflects Novo Nordisk’s ambition to expand production of its high-demand obesity treatment, Wegovy, per Reuters.
Both Novo Holdings and Catalent have reaffirmed their intention to finalize the acquisition by the close of 2024, pending all necessary regulatory approvals. Catalent confirmed in a statement to Reuters on Monday that “we continue to expect to close the transaction towards the end of calendar year 2024, subject to customary closing conditions, including receipt of required regulatory approvals.” Novo Nordisk similarly expressed confidence in an end-of-year timeline, stating that “the fulfilment of various customary closing conditions is progressing” as anticipated.
Related: Consumer Advocates and Unions Challenge Novo Holdings’ $16.5 Billion Deal for Catalent
However, not all industry players are supportive of the deal. Swiss healthcare company Roche, along with Eli Lilly, Novo Nordisk’s main competitor in the weight-loss and diabetes drug markets, have voiced concerns about the acquisition’s potential to stifle competition. Roche recently argued that the transaction should be blocked, raising the alarm over its potential impact on the rapidly expanding weight-loss drug industry. Additionally, in May, the U.S. Federal Trade Commission (FTC) issued a second request for information on the merger, signaling increased scrutiny. Although the FTC has not yet provided an update on its stance, the lack of a decision suggests the agency may still be considering competition-related concerns.
The proposed acquisition has also drawn criticism from consumer advocacy groups in the U.S., who argue it may reduce competition in the booming obesity drug market. Last month, U.S. Senator Elizabeth Warren urged the FTC to closely examine the deal, asserting it could potentially grant Novo Nordisk an unfair advantage in obesity treatments.
Source: Reuters
Featured News
Swisscom’s Fastweb-Vodafone Italia Merger Gains Momentum with Antitrust Approval Pending
Nov 24, 2024 by
CPI
Novo Holdings Nears EU Approval for $16.5 Billion Catalent Acquisition
Nov 24, 2024 by
CPI
Australia Drops Plan to Fine Tech Giants for Misinformation Spread
Nov 24, 2024 by
CPI
Michael Jordan’s Racing Team Drops Antitrust Appeal Against NASCAR
Nov 24, 2024 by
CPI
EU Closes Apple E-Book Antitrust Probe After Complaint Dropped
Nov 24, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Remedies Revisited
Oct 30, 2024 by
CPI
Fixing the Fix: Updating Policy on Merger Remedies
Oct 30, 2024 by
CPI
Methodology Matters: The 2017 FTC Remedies Study
Oct 30, 2024 by
CPI
U.S. v. AT&T: Five Lessons for Vertical Merger Enforcement
Oct 30, 2024 by
CPI
The Search for Antitrust Remedies in Tech Leads Beyond Antitrust
Oct 30, 2024 by
CPI