09:14 AM EDT, 10/11/2024 (MT Newswires) -- (Updates with Catalent's ( CTLT ) response in the last paragraph.)

US Senator Elizabeth Warren has asked the US Federal Trade Commission to "carefully scrutinize" the $16.5 billion bid by Novo Nordisk's ( NVO ) parent company for contract drug maker Catalent ( CTLT ) and to block the deal if it's found to be in breach of antitrust rules.

"I am concerned that this deal could increase Novo Nordisk's ( NVO ) dominance over vital GLP-1 inhibitor drugs, reducing competition and increasing prices for patients," Warren said in a letter to FTC Chair Lina Khan.

Warren said that Eli Lilly ( LLY ) -- Novo Nordisk's ( NVO ) largest rival in the market for GLP-1 weight loss and diabetes drugs -- "also contracts with Catalent ( CTLT ) to fill and package its drugs at Catalent ( CTLT ) sites."

"I am concerned that Novo Nordisk's ( NVO ) merger with Catalent ( CTLT ) will give Novo Nordisk ( NVO ) 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 ( CTLT ) to produce GLP-1 drugs," Warren said in the letter.

A Novo spokesperson told MT Newswires that Novo plans to "honor all existing contracts at the Catalent ( CTLT ) sites."

"We are not aware of any competitive GLP-1 products being manufactured for commercial sale at the three sites that Novo Nordisk ( NVO ) is planning to acquire," the Novo spokesperson said. "In particular, Catalent ( CTLT ) has no role in the manufacturing of Zepbound and Mounjaro, two of Eli Lilly's ( LLY ) GLP-1s."

Novo expects the deal to close "toward the end of the calendar year," the spokesperson added.

A Catalent ( CTLT ) spokesperson told MT Newswires that the company continues to expect to close the deal "towards the end of calendar year 2024."

Price: 119.20, Change: +1.67, Percent Change: +1.42