Competition concerns may halt Novo acquisition

Novo Holdings’ February announcement of its agreement to purchase Catalent, a drug packaging company, may be in jeopardy as experts indicate U.S. antitrust authorities might not approve the 110 billion kroner deal. Concerns arise from the potential disadvantage posed to other pharmaceutical companies in securing packaging services, particularly as Novo Nordisk, largely owned by Novo Holdings, would take over three Catalent facilities. Eli Lilly, a direct competitor in the diabetes and severe obesity market, has expressed worries, and even Senator Elizabeth Warren has called for scrutiny to prevent unfair competition. However, Catalent’s CEO Alessandro Maselli has assured the continuity of service to existing clients. It is also noted that more than 20 other subcontractors globally can fill drug pens like those for Wegovy, a Novo product. Novo Holdings is owned by the Novo Nordisk Foundation, which supports health, sustainability, and research initiatives and celebrates its centenary this year with substantial equity.