share_log

'Warren Urges FTC to Probe Deal That Would Give Novo Nordisk Control of Some Catalent Plants; At Issue Is Whether the Deal Would Give Novo an Unfair Advantage in the Market for Obesity, Diabetes Drugs' - STAT News

Benzinga ·  Oct 10 21:32

U.S. Sen. Elizabeth Warren has asked the Federal Trade Commission "closely scrutinize" a $16.5 billion deal in which Novo Nordisk's parent foundation would acquire Catalent, a leading contract drug manufacturer, over concerns the acquisition would give the pharmaceutical company an unfair advantage in the burgeoning market for drugs used to treat obesity and diabetes.

In a letter dated Wednesday, Warren noted that Catalent fills and packages syringes and injection pens for Novo Nordisk and other drug manufacturers, including its biggest rival, Eli Lilly, which sells competing medications and also contracts with Catalent to fill and package its drugs. She noted that Eli Lilly has described Catalent as an "integral" player in its manufacturing of diabetes and obesity drugs.

"I am concerned that Novo Nordisk's merger with Catalent will give Novo Nordisk unprecedented visibility into and control over its competitor's production capacity, costs, and business practices, and the ability to preference its own products and obstruct its competitors' use of Catalent to produce" the drugs, she wrote. The drugs belong to a class of medicines known as GLP-1s.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
    Write a comment