The European Commission is reportedly set to unconditionally approve Novo Holdings' $16.5 billion acquisition of U.S. contract drug manufacturer Catalent (CTLT, Financial). A final decision on the merger is expected by December 6, unless a more detailed review is initiated. In February, Catalent agreed to be acquired by Novo Holdings at $63.50 per share. Post-acquisition, Novo Holdings plans to transfer three Catalent production facilities to its parent company, Novo Nordisk (NVO), to boost the production of its popular weight-loss drug, Wegovy.
Both Novo Holdings and Catalent have expressed confidence that the deal will close by the end of the year. However, pharmaceutical giant Roche has urged regulators to block the acquisition, citing potential harm to competition in the weight-loss drug sector. Eli Lilly (LLY), a major competitor in the obesity and diabetes medication market, has also voiced concerns. Additionally, U.S. consumer groups have criticized the deal, urging the Federal Trade Commission to intervene, arguing it poses a threat to competition in the weight-loss drug industry.
As of the last market close, Catalent's shares rose by 2.21% to $60.98, while Novo Nordisk's shares increased by 2.37% to $105.06.
