EU Decision on Novo Holdings' Acquisition of Catalent

By Foo Yun Chee and Maggie Fick

BRUSSELS/LONDON (Reuters) – EU antitrust regulators will decide by Dec. 6 whether to clear Novo Holdings' acquisition of contract drug manufacturer Catalent (NYSE:CTLT), according to a filing on the European Commission website on Monday.

The controlling shareholder of Novo Nordisk (NYSE:NVO) submitted a request for EU approval on Oct. 31, as indicated in the filing.

EU antitrust regulators can either approve the deal with or without remedies, or they can initiate a full-scale four-month investigation if serious concerns arise.

The acquisition, announced in February, highlights Danish drugmaker Novo Nordisk's effort to enhance production of its popular obesity drug Wegovy.

Novo Holdings, Novo Nordisk, and Catalent have all reiterated their expectations for the transaction to close by the end of this year. The three companies did not immediately respond to requests for comment on Monday morning.

In May, the companies indicated they had received a second request from the U.S. Federal Trade Commission for additional information regarding the deal. There has been no update from the FTC on its review since then.

Pharmaceutical giant Roche stated last month that regulators should block the deal, citing concerns it might impact competition in the growing weight-loss drug market. Eli Lilly (NYSE:LLY), a primary competitor in the obesity and diabetes drug sector, has also raised concerns.

Additionally, U.S. consumer groups criticized the deal last month, urging the FTC to reject it, claiming it poses a threat to competition in the lucrative weight-loss drug market. U.S. Senator Elizabeth Warren has also urged the FTC to examine the transaction, arguing it may provide Novo Nordisk with an unfair advantage in obesity drugs.