*

Consumer groups and unions express competition concerns to

FTC

*

Deal could limit options for competitors developing GLP-1

drugs

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Concerns also raised about impact on gene therapy

manufacturing

(Updates Oct. 17 story with Novo Holdings declining comment,

paragraph 7)

By Jody Godoy and Maggie Fick

NEW YORK, Oct 18 (Reuters) - U.S. consumer groups and

two large labor unions urged the U.S. Federal Trade Commission

on Thursday to block Novo Holdings, the controlling shareholder

of Novo Nordisk, from acquiring contract drug

manufacturer Catalent ( CTLT ), saying the deal threatens

competition in weight loss drugs and cutting-edge gene

therapies.

U.S. Public Interest Research Group, Service Employees

International Union (SEIU) and others expressed concerns in a

letter to the FTC about the $16.5 billion deal, which Novo

Holdings has said would boost supply of Wegovy, Novo's

blockbuster GLP-1 injectable weight-loss drug.

Last week, U.S. Senator Elizabeth Warren, a Democrat, called

on the FTC to look closely at the deal over similar concerns.

The deal could constrain options for competitors such as

Amgen ( AMGN ), Pfizer ( PFE ), Roche, and AstraZeneca ( AZN )

, who are reportedly developing their own GLP-1 drugs,

the groups said.

"Because of the proposed acquisition, there is a real

question of whether these future rivals to Novo will be able to

secure the expertise to bring the product to market and have

available and qualified capacity to manufacture these products

when they commercially launch," the groups said.

Viking Therapeutics ( VKTX ), Structure Therapeutics ( GPCR )

and Sun Pharma also have GLP-1 drugs in

development and could be affected, the groups said.

A Novo Holdings spokesperson declined to comment.

A Viking spokesperson declined to comment. The other

companies did not immediately respond to requests for comment on

Thursday.

According to the terms of the deal, Novo Holdings would sell

three of Catalent's ( CTLT ) factories, where injection pens are filled

in sterile conditions, in Italy, Belgium and the United States,

on to Novo Nordisk for $11 billion.

Novo Nordisk has said it is committed to honoring existing

contracts at the plants, and that it is not aware of any

competitive GLP-1 products being manufactured for commercial

sale at the three sites.

The groups, which included Consumer Action, diabetes group

Beta Cell Action, Doctors for America and the American

Federation of State, County and Municipal Employees (AFSCME)

union, also expressed concern that Novo Holding's ownership

could affect Catalent's ( CTLT ) capacity to manufacture gene therapies.

AFSCME represents around 1.6 million public sector workers,

and SEIU has around 2 million members who work in healthcare,

the public sector and property services.

Ten consumer groups had signed on to the letter on Thursday

afternoon.

"The competitive concerns here go far beyond existing drugs.

We believe the commission should look at the impact on future

therapies including gene therapy," said David Balto, the

antitrust lawyer who represents the groups and drafted the

letter.

The letter mentioned Catalent's ( CTLT ) contracts with Sarepta

Therapeutics ( SRPT ), to produce its gene therapy Elevidys, and

with Novartis, to produce its gene therapy Zolgensma.

The Catalent ( CTLT ) facilities involved are separate from the three

factories that Novo Holdings plans to sell on to Novo Nordisk.

Sarepta does do not anticipate any impact from the Catalent ( CTLT )

acquisition, spokesperson Tracy Sorrentino said on Thursday.

Sarepta's contract with Catalent ( CTLT ) runs through 2028.

A Novartis spokesperson said on Thursday that Zolgensma is

no longer manufactured at any Catalent ( CTLT ) facility.