BRUSSELS/LONDON – EU antitrust regulators will decide by December 6 whether to clear Novo Holdings’ acquisition of contract drug manufacturer Catalent (NYSE: CTLT), according to a filing on the European Commission website on Monday.
The controlling shareholder of Novo Nordisk (NYSE: NVO) put in a request for EU approval for the deal on October 31, the filing showed.
The EU antitrust regulators can either clear the deal with or without remedies. Alternatively, it can open a full-scale, four-month-long investigation if it has serious concerns.
The $16.5 billion acquisition, announced in February, underscores Danish drugmaker Novo Nordisk’s push to boost the output of its popular obesity drug Wegovy.
Novo Holdings, Novo Nordisk, and Catalent have all recently reiterated their expectations that the transaction will close towards the end of this year.
“We are following all regulatory procedures required for this transaction,” Novo Holdings said in a statement to Reuters on Monday.
“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,” Catalent said.
“The fulfillment of various customary closing conditions is progressing, and Novo Nordisk still expects that the acquisition will be completed towards the end of 2024,” Novo Nordisk said.
In May, the companies said they had received a second request from the U.S. Federal Trade Commission for more information on the deal. There has been no update from the FTC on its review of the deal since then.
Last month, Roche, the pharmaceuticals giant, said regulators should block the deal on concerns that it could hit competition in the booming weight-loss drug industry. Eli Lilly (NYSE: LLY), Novo’s main rival in the obesity and diabetes drug market, has also expressed worries.
The deal has also been criticized by U.S. consumer groups, who last month urged the FTC to block it, saying it threatens competition in the booming weight-loss drug industry. Last month, U.S. Senator Elizabeth Warren asked the FTC to scrutinize the deal, saying it may give Novo Nordisk (NYSE: NVO) an unlawful advantage in obesity drugs.
(Source: Reuters)
