Catalent CEO to Remain After Novo Holdings Acquisition

(Reuters) – Catalent (NYSE:CTLT) CEO Alessandro Maselli stated on Monday that he will continue leading the U.S.-based contract drugmaker following its acquisition by Novo Holdings, which controls weight-loss drug manufacturer Novo Nordisk (NYSE:NVO).

Maselli's open letter addresses recent criticism regarding Novo Holdings' $16.5-billion acquisition of Catalent. U.S. consumer groups raised concerns that the acquisition could threaten competition in both weight-loss drugs and innovative gene therapies. They have urged the U.S. Federal Trade Commission to block the deal.

Catalent partners with Danish company Novo for the production of Wegovy, a widely recognized and effective weight-loss medication from the GLP-1 category, which analysts forecast could reach a market value of $150 billion by 2030. Additionally, it produces Sarepta Therapeutics (NASDAQ:SRPT)’s gene therapy, Elevidys, among others.

In light of the concerns, CEO Maselli assured customers in a letter that Catalent would maintain its status as an independent contract manufacturer. He emphasized, "I want to be clear: our commitments to you will not change, your products will remain our focus, and your proprietary information will be protected."

Maselli has been leading Catalent for over two years, during which the company undertook a strategic review following manufacturing issues and declining revenues, in line with a settlement with activist investor Elliott Investment Management.

The acquisition by Novo Holdings has received approval from Brazil's antitrust regulator, but awaits clearance in Europe and the United States. Recently, U.S. Senator Elizabeth Warren called for a thorough investigation by the Federal Trade Commission, urging it to block the acquisition if found illegal.

As of Monday, Catalent reaffirmed its commitment to providing fill and finish services for sterile products related to large and small molecules, including gene and cell therapies.