Novo Holdings’ deliberate acquisition of Catalent is dealing with any other lengthen. Simply weeks after Novo Holdings made up our minds to resubmit its utility to the Federal Business Fee, the company is looking for extra details about the deal.
The transaction was once at the beginning anticipated to near via the top of this 12 months, however this timeline is probably not as forged given the repeated delays within the FTC’s overview procedure.
The purchase was once introduced in early February when Novo Holdings — the funding arm of the root that owns a controlling stake in Danish pharma massive Novo Nordisk — disclosed its plans to obtain New Jersey-based contract building production group Catalent for $16.5 billion.
Catalent is without doubt one of the biggest CDMOs within the lifestyles sciences box. It reported $4.2 billion in internet income for the fiscal 12 months that ended June 30, 2023.
Will have to the deal shut, Novo Nordisk can pay Novo Holdings $11 billion to gain 3 of Catalent’s production websites specializing in the filling of vials for sterile injectable medicine. The websites are situated in Belgium, Italy and Indiana.
Those websites have already got ongoing relationships with Novo Nordisk as a part of the drugmaker’s world production infrastructure for its GLP-1 agonist medicine. Call for for Ozempic and Wegovy — two GLP-1 medicine made via Novo Nordisk — continues to be hovering, and obtaining those websites would considerably spice up the drugmaker’s manufacturing capability.
“We’re more than happy with the settlement to obtain the 3 Catalent production websites which can permit us to serve considerably extra other folks residing with diabetes and weight problems one day,” Novo Nordisk CEO Lars Fruergaard Jørgensen mentioned in a February press unlock.
The primary lengthen within the FTC’s overview procedure for this deal got here a month in the past when Novo Holdings withdrew and refiled its utility for the deal’s approval after having “casual discussions with FTC body of workers.” This was once achieved to “give the FTC overtime to study the transactions,” in step with the refiling. The resubmission brought on a 30-day extension to the FTC’s antitrust overview.
After which ultimate week, the FTC asked further paperwork and knowledge from Catalent and Novo Holdings — a transfer that brought on but any other 30-day extension to the company’s overview.
Each Novo Holdings and Catelent are collecting additional information to offer the FTC “as expeditiously as imaginable,” in step with a securities submitting from Catalent.
Eli Lilly is essentially the most outstanding voice wondering the proposed acquisition, which comes as no wonder making an allowance for the drugmaker is Novo Nordisk’s leader competitor within the GLP-1 area. Eli Lilly’s Mounjaro and Zepbound are direct competition to Novo Nordisk’s Ozempic and Wegovy.
In a similar fashion to Novo Nordisk, Eli Lilly has additionally been having bother maintaining with the skyrocketing call for for GLP-1 drugs. In November, the drugmaker introduced it was once making plans a brand new $2.5 billion production web site in Germany to assist it meet the expanding call for for its injectable diabetes and weight problems medicine.
Simply days after Novo Nordisk introduced its plans to obtain Catalent, Eli Lilly CEO David Ricks informed the Monetary Occasions that he discovered the deal “abnormal” given antitrust government’ expanding scrutiny for mergers within the biopharma area.
Additionally simply days after the deal was once introduced, Eli Lilly CFO Anat Ashkenazi expressed fear about how the purchase would have an effect on his corporate’s exceptional contracts with Catalent.
“Catalent is an essential component or producer of each business and pipeline merchandise for the trade, particularly in diabetes and weight problems, and we’ve merchandise with those websites as smartly,” he mentioned on an income name. “So, our focal point as of late is on making sure that continuity of provide of drugs for sufferers is uninterrupted, in addition to we intend on maintaining Catalent responsible to their contract with us.”
Novo Nordisk has mentioned that it is going to honor all prior buyer duties of the 3 amenities it’s making plans to obtain. The drugmaker didn’t reply to MedCity Information’ request for extra remark.
In a commentary despatched to MedCity Information, a Catalent spokesperson mentioned they’re “assured within the many advantages of the transaction” and nonetheless be expecting the deal to near prior to the top of the 12 months.
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