Brussels (Brussels Morning Newspaper) – Novo Holdings has received unconditional European Commission approval for its $16.5bn acquisition of Catalent, with no competition concerns raised.
Novo Holdings, the parent organisation of Danish drugmaker Novo Nordisk, has secured European Commission unconditional antitrust clearance for its proposed $16.5bn acquisition of Catalent. The Commission figured that the transaction would not raise competition concerns in the European Economic Area (‘EEA’).
Novo Holdings is the ultimate proprietor of Novo Nordisk, a pharmaceutical company concentrated on the treatment of chronic illnesses including obesity and diabetes. Catalent is a contract development and manufacturing association (‘CDMO’) that develops and manufactures pharmaceuticals on behalf of pharmaceutical companies.
Why did the European Commission approve Novo Holdings’ Catalent deal?
According to the Commission, it investigated the effect of the transaction on the markets for the supply of (i) pre-filled syringes; and (ii) orally disintegrating tablets (‘ODTs’). Based on its market investigation, the Commission figured that among others: (i) customers of pre-filled syringes will persist in having access to many significant, credible CDMOs after the transaction and thus the transaction would not result in customers lacking sources of supply alternatives to Catalent; and (ii) customers for ODTs will continue to have sufficient alternatives to Catalent, as well as the possibility to switch between CDMOs.
The EU Commission found that the proposed merger would not raise competition concerns on any of the markets concerned in the EEA or on any substantial part of it. It thus authorised the transaction unconditionally.
Catalent president and CEO Alessandro Maselli stated: “We are pleased to have received European Commission approval, which is an important milestone toward completing our pending transaction with Novo Holdings. I am deeply grateful for the ongoing commitment and efforts of the Catalent team. There is tremendous positive momentum underway at Catalent, and I believe that our future is even brighter as a private company with the support of Novo Holdings.”
