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Roche comes out against clearing takeover of drug manufacturer Catalent
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Roche comes out against clearing takeover of drug manufacturer Catalent
Oct 23, 2024 2:04 AM

FRANKFURT, Oct 23 (Reuters) - The CEO of pharmaceuticals

giant Roche has urged authorities to block the takeover

of contract drug manufacturer Catalent ( CTLT ) by Novo

Nordisk's controlling shareholder, citing harm to

industry peers.

"It's not a problem for us, but it could be a problem for

other smaller players, if there is a restriction in how many

(contract manufacturers) are available," Roche's CEO Thomas

Schinecker said in a media call. "From an industry perspective,

it would be a wrong decision by authorities."

He spoke after the release of quarterly sales on Wednesday.

Last week, U.S. consumer groups and labour unions petitioned

the U.S. Federal Trade Commission to block Novo Holdings, the

controlling shareholder of Novo Nordisk, from acquiring

Catalent ( CTLT ), saying the deal threatened competition in weight loss

drugs and cutting-edge gene therapies.

The groups said at the time that the deal could constrain

options for competitors such as Amgen ( AMGN ), Pfizer ( PFE ),

Roche and AstraZeneca ( AZN ), which are reportedly developing

their own obesity drugs, some of which are based on

difficult-to-make peptides.

Viking Therapeutics ( VKTX ), Structure Therapeutics ( GPCR )

and Sun Pharma could also be affected, the

groups said.

Novo Holdings has said it believes in a "pro-competitive

rationale" for the transaction.

The head of Roche's pharmaceutical division, Teresa Graham,

underscored on Wednesday that Roche itself was not impacted: "We

are quite confident in the capacity we have. We have reserved

capacity with other CMOs (contract manufacturing

organisations)."

Roche has previously said it would use a mix of in-house and

external manufacturing for future commercial production of its

obesity drugs.

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