FTC scrutinizes Novo Nordisk's $16.5B Catalent merger amid antitrust concerns

In the United States, concerns are mounting regarding Novo Nordisk's proposed $16.5 billion acquisition of Catalent, a contract development and manufacturing organization. Senator Elizabeth Warren has urged the Federal Trade Commission (FTC) to conduct a thorough investigation into the merger, citing potential antitrust violations. Critics fear that the acquisition could enhance Novo Nordisk's dominance in the GLP-1 market, which includes essential drugs for diabetes and obesity treatment, potentially leading to increased prices and reduced competition. Catalent currently plays a significant role in the production of Novo Nordisk's GLP-1 products while also collaborating with Eli Lilly, a key competitor. The merger raises alarms that Novo Nordisk could gain access to Eli Lilly's production capabilities, allowing it to prioritize its own products over those of its rivals. This situation is exacerbated by Novo Nordisk's previous scrutiny from the FTC for allegedly misrepresenting patents related to its diabetes medications. The ongoing consolidation within the U.S. pharmaceutical industry has resulted in fewer dominant firms, contributing to rising drug prices. Critics argue that Novo Nordisk's actions, including the discontinuation of Levemir, a long-acting insulin, reflect a shift in focus towards more profitable GLP-1 drugs, undermining patient access to essential medications. As the FTC reviews the merger, the implications for competition and pricing in the pharmaceutical sector remain a critical concern, highlighting the broader trend of vertical integration in the industry.