Victor Golmer
A contract manufacturing drug organization executive said he believes that Novo Nordisk’s (NVO) planned purchase of Catalent (NYSE:CTLT) will spur competition.
Beau Garrett, CEO of American Injectables, has had two meetings with the Federal Trade Commission and has told the regulator that it should support the transaction, according to a CTFN report, which cited an interview with the executive. He said he would be surprised if the FTC blocks the deal.
Industry expectations are that if Novo (NVO) is able to purchase Catalent (CTLT) it will prioritize GLP-1 production over the other medications, opening the door to competition as Catalent customers look for supply elsewhere, according to Garrett. A tie up between Catalent and Novo could help small-and medium-sized CDMOs.
An attorney familiar with the deal said that Catalent (CTLT) and Thermo Fisher (TMO) are in their own class as the only-full service US-based CDMOs. He explained that through the acquisition, Novo may create a significant barrier to market entry and be a threat to its rivals.
Catalent (CTLT) and Novo Nordisk Foundation received a request for more information from the FTC in May on their planned deal. In February, Catalent said it had agreed to be acquired by Novo Holdings for $16.5 billion. Novo Holdings will then sell three Catalent manufacturing sites to Novo Nordisk (NVO), which should help increase production of the company’s hugely popular weight-loss drug, Wegovy.
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