Catalent Misses Revenue Estimates Amid Growing Opposition to Novo Holdings’ $16.5 Billion Acquisition

Catalent's Financial Performance:
Catalent reported a 4% growth in net revenue for its fiscal first quarter of 2025, but fell short of Wall Street's projections, bringing in $1.02 billion compared to the expected $1.06 billion.

Opposition to Acquisition:
U.S. consumer advocacy organizations and labor unions are urging the Federal Trade Commission (FTC) to block Novo Holdings' proposed $16.5 billion acquisition of Catalent, citing concerns about the potential impact on competition in the pharmaceutical market, particularly regarding weight loss drugs and advanced gene therapies.

Stakeholder Concerns:
Companies like Eli Lilly and Roche have expressed concerns about the acquisition, arguing that it could limit competition and have negative effects on the industry. U.S. Senator Elizabeth Warren has also called for a thorough investigation by the FTC.

Catalent's Reassurance:
Catalent CEO Alessandro Maselli has sought to reassure customers that little will change after the acquisition, emphasizing the company's commitment to continuing as a leading global, independent, full-service CDMO.

Regulatory Scrutiny:
The acquisition is expected to close by the end of 2024, pending regulatory approvals. The EU antitrust decision on the acquisition is set for December.