The Federal Trade commission is scrutinizing Novo Nordisk’s planned acquisition of Metsera, a startup focused on novel metabolic disease treatments, raising concerns the deal could stifle competition. daniel Guarnera, director of the FTC‘s Bureau of Competition, outlined these concerns in a letter to lawyers representing both companies on Tuesday.
The move signals increased regulatory pressure on pharmaceutical consolidation, especially in the rapidly expanding market for obesity and diabetes drugs. Novo Nordisk, already a dominant player with blockbuster medications like Wegovy and Ozempic, aims to incorporate Metsera’s research into its pipeline. The FTC’s intervention suggests the agency fears the acquisition could eliminate a potential competitor and ultimately lead to higher prices or reduced innovation in the treatment of metabolic diseases, impacting millions of patients. The agency has requested additional details about the proposed deal.
Metsera is developing a novel class of metabolic modulators, aiming to address obesity and related conditions. Novo Nordisk announced its intent to acquire the company in September 2023, but the financial terms were not disclosed. The FTC’s letter initiates a deeper investigation into the potential anti-competitive effects of the merger,potentially leading to a prolonged review or even a challenge to the acquisition.
