Consumer groups ask FTC to block Novo Holdings-Catalent deal (updated)

Catalent

17/10/2024 20:49

* 
      Consumer groups and unions express competition concerns to
FTC
    

        * 
      Deal could limit options for competitors developing GLP-1
drugs
    

        * 
      Concerns also raised about impact on gene therapy
manufacturing
    

  
 (Updates paragraph 7 with attempt to seek comment, 9-10 with
consumer groups signing on to the letter, 15 with comment from
Sarepta)
    By Jody Godoy and Maggie Fick
       NEW YORK, Oct 17 (Reuters) - 
    U.S. consumer groups and two large labor unions urged the
U.S. Federal Trade Commission on Thursday to block Novo
Holdings, the controlling shareholder of Novo Nordisk
 NOVOb.CO , from acquiring contract drug manufacturer Catalent
 CTLT.N , saying the deal threatens competition in weight loss
drugs and cutting-edge gene therapies.
  
    U.S. 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, U.S. Senator Elizabeth Warren, a Democrat, called
on the FTC to look closely at the deal over similar concerns. 
    The deal could constrain options for competitors such as
Amgen  AMGN.O , Pfizer  PFE.N , Roche  ROG.S , and AstraZeneca
 AZN.L , who are reportedly developing their own GLP-1 drugs,
the groups said.
    "Because of the proposed acquisition, there is a real
question of whether these future rivals to Novo will be able to
secure the expertise to bring the product to market and have
available and qualified capacity to manufacture these products
when they commercially launch," the groups said.
    Viking Therapeutics  VKTX.O , Structure Therapeutics
 GPCR.O  and Sun Pharma  SUN.NS  also have GLP-1 drugs in
development and could be affected, the groups said.
    The companies did not immediately respond to requests for
comment on Thursday.
    According to the terms of the deal, Novo Holdings would sell
three of Catalent's factories, where injection pens are filled
in sterile conditions, in Italy, Belgium and the United States,
on to Novo Nordisk for $11 billion.
    Novo Nordisk has said it is committed to honoring existing
contracts at the plants, and that it is not aware of any
competitive GLP-1 products being manufactured for commercial
sale at the three sites.
    The groups, which included Consumer Action, diabetes group
Beta Cell Action, Doctors for America and the American
Federation of State, County and Municipal Employees (AFSCME)
union, also expressed concern that Novo Holding's ownership
could affect Catalent's capacity to manufacture gene therapies.
    AFSCME represents around 1.6 million public sector workers,
and SEIU has around 2 million members who work in healthcare,
the public sector and property services.
    Ten consumer groups had signed on to the letter on Thursday
afternoon.
    "The competitive concerns here go far beyond existing drugs.
We believe the commission should look at the impact on future
therapies including gene therapy," said David Balto, the
antitrust lawyer who represents the groups and drafted the
letter.
    The letter mentioned Catalent's contracts with Sarepta
Therapeutics  SRPT.O , to produce its gene therapy Elevidys, and
with Novartis  NOVN.S , to produce its gene therapy Zolgensma.
The Catalent facilities producing these therapies are separate
from the three factories that Novo Holdings plans to sell on to
Novo Nordisk.
    Sarepta does do not anticipate any impact from the Catalent
acquisition, spokesperson Tracy Sorrentino said on Thursday.
Sarepta's contract with Catalent runs through 2028.
        A Viking spokesperson declined to comment. 
  

 (Reporting by Jody Godoy in New York and Maggie Fick in London;
Editing by Nick Zieminski)
 ((mailto:Jody.Godoy@thomsonreuters.com;))