FTC delays Novo Holdings buy of Catalent

Catalent (NYSE: MCTLT) and the Novo Nordisk Foundation (as the ultimate parent entity of Novo Holdings and Novo Nordisk [NOV: N])  announced that, on May 2, each received a request for additional information and documentary materials (the second request) from the US Federal Trade Commission (FTC) in connection with the proposed merger.

In February this year, Novo Holding announced a $16.5 billion offer to acquire Catalent, a US contract development and manufacturing organization (CDMO). In side deal, Novo Nordisk said it will acquire three Catalent’s manufacturing sites for an upfront payment of $11 billion, provided financial commitments to Novo Holdings for amounts corresponding to the acquisition price for the three sites as well as undertakings regarding the regulatory approval process.

The sites are expected to help Novo Nordisk overcome shortages of semaglutide, the active ingredient of its top-selling obesity drug Wegovy, in which Catalent is already involved on a contract basis.