By Ludwig Burger
FRANKFURT (Reuters) – The CEO of Roche, a pharmaceutical giant, has expressed concerns about the potential takeover of contract drug manufacturer Catalent by Novo Nordisk’s controlling shareholder. The CEO believes that this acquisition could harm competition in the weight-loss drug industry, particularly those based on the gut hormone GLP-1.
While Roche has stated that it is not directly impacted by this transaction, it is one of the first drugmakers to oppose it due to the potential implications for the market. Roche’s CEO, Thomas Schinecker, emphasized the importance of maintaining competition in this sector during a media call following the release of quarterly sales.
Schinecker highlighted the negative effects of limiting competition, stating that it could pose challenges for smaller players in the industry. He also noted that the acquisition of contract manufacturers by companies could restrict competition further.
Recent petitions from advocacy groups have urged authorities to block Novo Holdings from acquiring Catalent, citing concerns about competition in weight loss drugs and gene therapies. Executives from Eli Lilly, a major competitor of Novo Nordisk, have also expressed apprehension about the deal.
In response to Roche’s CEO remarks, a spokesperson from Novo Nordisk reiterated that the acquisition would not significantly impact competition, as Catalent would continue to operate independently with a large number of other contract drugmakers in the market.
Both Novo Holdings and Catalent have expressed confidence in the pro-competitive nature of the transaction and expect it to proceed towards the end of the year. Novo Nordisk’s acquisition of Catalent’s manufacturing sites is part of its broader strategy in the pharmaceutical industry.
Roche’s pharmaceutical division head, Teresa Graham, reassured that Roche has secured manufacturing capacity with other companies and is not heavily reliant on Catalent. The company remains committed to using a combination of in-house and external manufacturing for its obesity drugs.
