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EU has set Dec. 6 deadline for preliminary review of deal
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Novo, Catalent ( CTLT ) expect deal to close towards year-end
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US regulators have also sought information on the deal
By Foo Yun Chee and Maggie Fick
BRUSSELS/LONDON, Nov 13 (Reuters) - EU antitrust
regulators have asked pharma rivals and customers for feedback
in four business areas in light of Novo Holdings' planned $16.5
billion takeover of Catalent ( CTLT ), people familiar with the
matter said.
Novo Holdings is the controlling shareholder of Danish
drugmaker Novo Nordisk, whose profits from
blockbuster weight-loss drug Wegovy propelled it to become
Europe's most valuable company by market value.
While the questionnaire shows the European Commission
seeking to understand the market, it could allow rivals and
customers to flag potential anti-competitive concerns.
The questionnaire seeks feedback on vertical links in parts
of the contract development and manufacturing organisation
(CDMO) industry, including injectables, pre-filled syringes
orally dissolved pills, and soft gels, the sources said.
The regulator distributed it to big pharma and CDMO
companies, the sources said. This came after Novo Holdings put
in a request for EU approval for the deal on Oct. 31.
The EU watchdog has set a Dec. 6 deadline for its
preliminary review. Novo Holdings has until Nov. 29 to offer
remedies during this phase, if any are required.
European Union regulators can either clear the deal with or
without remedies, or open a full-scale, four-month investigation
if they have serious concerns.
The $16.5 billion deal, announced in February, underscores
Novo Nordisk's drive to boost output of Wegovy, a once-weekly
injection.
After the deal closes, Novo Holdings will sell three of
Catalent's ( CTLT ) fill-finish sites - in Italy, Belgium and the United
States - onto Novo Nordisk for $11 billion. The sites will then
by fully used by Novo Nordisk for filling its injection pens.
Novo Holdings, Novo Nordisk and Catalent ( CTLT ) all recently
reiterated their expectations that the transaction will close
towards the end of this year.
In May, the companies said they had received a second
request from the U.S. Federal Trade Commission (FTC) for more
information on the deal. There has been no update from the FTC
on its review of the deal since then.
Novo Nordisk faces competition from U.S. rival Eli Lilly's ( LLY )
injection Zepbound in the fast-growing obesity drug race. Some
analysts have estimated the market could be worth as much as
$150 billion by the early 2030s.
U.S-based Catalent ( CTLT ), one of the world's largest contract
manufacturers, made a huge windfall during the COVID-19 pandemic
as it was contracted to help make vaccines by several companies.
But the company faced a range of problems in the pandemic's
aftermath, as COVID-vaccine revenue fell and its costs increased
due to actions to address quality control lapses identified
during inspections by U.S. drug regulators at three plants.