The letter outlines concerns that the acquisition could lead to “vertical foreclosure,” limiting access for Novo’s current and future rivals in GLP-1 drugs and gene therapies.
Catalent, with its 50 global facilities, has been an industry leader in manufacturing GLP-1 drugs, including Novo’s own Ozempic and Wegovy.
Since 2017, Catalent has been one of the few CDMOs capable of providing the specialized fill-finish development and manufacturing services essential for GLP-1 therapies.
By acquiring Catalent, Novo would have the power and incentive to restrict other pharmaceutical companies from accessing these vital services, potentially diminishing competition in this critical drug category.
The letter also highlights Catalent’s significance in gene therapy manufacturing, particularly in producing treatments like Sarepta Therapeutics Inc’s (NASDAQ:SRPT) Elevidys and Novartis AG’s (NYSE:NVS) Zolgensma.
Many of Catalent’s facilities focus on cell and gene therapies, and the coalition believes that Novo’s acquisition could disrupt the production and development of these treatments.
In summary, the coalition argues that keeping Catalent independent is vital for fostering innovation and maintaining competition in the pharmaceutical industry.
An independent Catalent would support future competitors to Novo in both GLP-1 drugs and gene therapies, ensuring that patients continue to have access to life-saving treatments without market limitations driven by consolidation.
Last week, United States Senator Elizabeth Warren wrote a letter to FTC’s Lina Khan, urging her to investigate the deal thoroughly, amid growing concerns about potential antitrust violations.
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