(Bloomberg) -- Novo Nordisk A/S can advance with its acquisition of factories from contract development and manufacturing organization Catalent Inc. after the Federal Trade Commission declined to challenge the deal.
The parties are free to close the transaction after all regulatory conditions were fulfilled, Novo said in a statement on Saturday.
The FTC had opened an in-depth probe on concerns the purchase could disadvantage Novo’s rivals who currently use Catalent as a manufacturer. Novo’s biggest shareholder, Novo Holdings A/S, is buying Catalent for $16.5 billion, including debt. In a three-way arrangement, Novo will then buy three of Catalent’s factories from its own shareholder for $11.7 billion.
The acquisition is a cornerstone of Novo’s push to build capacity for its blockbuster diabetes and obesity shots Ozempic and Wegovy, which analysts estimate will become the world’s best-selling drug franchise next year. Novo has struggled to keep up with demand for the medications.
The deal will probably have a “mid single-digit negative impact” on operating profit growth next year, Novo said in a statement on Saturday. As a result, the drugmaker said it doesn’t plan a share buyback program in 2025. This year, the deal will have a low single-digit negative impact on operating profit growth and negatively impact free cash flow, Novo said.
The European Union, which was also reviewing the transaction, unconditionally signed off on the deal earlier in December. The three factories, located in Anagni, Italy, Brussels and Bloomington, Indiana, focus on the stages of drug production when medicine is put into applicators and prepared for shipment to patients.
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