Novo Nordisk Catalent deal close to closing

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Novo Nordisk has just taken another step toward significantly improving the offerings of its blockbuster weight loss drug Wegovy and diabetes treatment Ozempic.

The Danish drugmaker’s parent company, Novo Holdings, won approval from European antitrust regulators last week to move forward with its proposed $16.5 billion takeover of U.S. drugmaker Catalent – ​​a deal that had raised concerns among both rival drugmakers and lawmakers.

The US Federal Trade Commission therefore remains the final hurdle that Novo Holdings must overcome to consolidate the colossal deal announced in February. Novo Holdings and Novo Nordisk said they expect the transaction to be completed by the end of the month.

Catalent is an attractive takeover target for Novo Holdings, which owns 77% of the voting shares of Novo Nordisk.

The deal could increase drug availability as Catalent is the primary provider of fill and finish work, which involves the filling and packaging of syringes and injector pens for Wegovy and Ozempic. Novo Holdings will immediately sell three Catalent sites for $11 billion to Novo Nordisk after the deal closes, allowing the drugmaker to better meet growing demand for its products.

“In the arms race against obesity, capacity remains king and entering into this deal could significantly accelerate Novo’s ability to supply this growing market,” BMO Capital Markets analyst Evan Seigerman wrote Friday , in a note. “Novo emphasized last quarter that it still sees no problems with patient demand and, for every dose demanded, capacity is the main bottleneck in the growth of its GLP-1 franchises. »

The European Commission, the executive arm of the European Union, specifically said the transaction would not pose a significant competitive threat. The commission said drugmakers will still have access to several alternative manufacturers of prefilled syringes and orally disintegrating tablets.

“The operation would not lead to customers lacking alternative sources of supply to Catalent,” argued the Commission, stressing that “there is sufficient capacity available on the market.”

Competing drugmakers backed out of the deal.

Earlier this year, Elie Lilly was the first to suggest this could pose problems since the company is a key rival to Novo Nordisk in the weight-loss drug space. In August, Eli Lilly CEO David Ricks also told analysts that the company relies on a single Catalent facility for some of its production, but that “it’s kind of strange that your main competitor is also your subcontractor and how to resolve this situation.

RockThomas Schinecker’s chief executive also said on a media call in October that the deal with Catalent would not affect the company, but “could be a problem for other smaller players.” He said limiting competition in the weight-loss drug sector, which Roche is working to join, is “not a good idea.”

Also in October, a coalition of more than 10 unions, public interest organizations and consumer groups wrote a letter to FTC Commissioner Lina Khan urging her to “challenge this transaction” and ensure that “the competition is protected and that consumers will have full access to treatments. “.

Feel free to send tips, suggestions, story ideas and data to Annika at annikakim.constantino@nbcuni.com.

Nearly 80 Nobel laureates in chemistry, medicine, economics and physics signed a letter Monday encouraging the Senate to oppose the confirmation of Robert F. Kennedy Jr. as secretary of Health and Welfare. Social services.

President-elect Donald Trump announced Kennedy as his HHS pick last month after saying in October that he would let him “run wild on health care.” Kennedy, who briefly campaigned as an independent presidential candidate, has previously promoted misinformation and conspiracy theories on topics including vaccines, Covid-19 and autism, among others.

If the Senate confirms Kennedy as head of HHS, he would be responsible for running the Food and Drug Administration, the Centers for Disease Control and Prevention, the Medicare and Medicaid insurance programs and the National Institutes of Health.

In the letter obtained by CNBC on Monday, the Nobel laureates said they “strongly urge” senators to vote against Kennedy’s nomination. The New York Times was first to report the letter.

“In addition to his lack of degrees or relevant experience in medicine, science, public health, or administration, Mr. Kennedy has opposed many vaccines that protect health and save lives,” the letter states. .

“Given his record, putting Mr. Kennedy in charge of DHHS would jeopardize public health and undermine America’s global leadership in health sciences, both in the public and commercial sectors,” he said. -he declared.

Among the signatories of the letter are 31 Nobel Prize winners in medicine, 18 in physics, 17 in chemistry and 11 in economics. Victor Ambros and Gary Ruvkun, who won this year’s Medicine Prize for their discovery of microRNA, signed the letter. Daron Acemoglu and Simon Johnson, who won this year’s economics prize for their work on how institutions affect the prosperity of nations, also signed the letter.

Here is the full text:

December 9, 2024

To the Members of the United States Senate:

We, the undersigned Nobel Laureates, write to ask you to oppose the confirmation of Robert F. Kennedy, Jr. as Secretary of the Department of Health and Human Services (DHHS).

The proposal to put Mr. Kennedy in charge of federal agencies charged with protecting the health of American citizens and conducting medical research that benefits our country and the rest of humanity has been widely criticized for multiple reasons. In addition to his lack of degrees or relevant experience in medicine, science, public health, or administration, Mr. Kennedy has opposed many vaccines that protect health and save lives, such as those that prevent measles and polio; a critique of the well-established positive effects of drinking water fluoridation; a promoter of conspiracy theories about remarkably effective treatments for AIDS and other diseases; and a hawkish critic of respected agencies (especially the Food and Drug Administration, the Centers for Disease Control, and the National Institutes of Health). The leader of DHHS should continue to nurture and improve – not threaten – these important and well-respected institutions and their employees.

Given his record, putting Mr. Kennedy in charge of DHHS would jeopardize public health and undermine America’s global leadership in health sciences, both in the public and commercial sectors.

We urge you to vote against confirming his nomination as DHHS Secretary.

77 Nobel Prize winners in medicine, chemistry, physics and economics

Feel free to send tips, suggestions, story ideas and data to Ashley at ashley.capoot@nbcuni.com.