Roche CEO Opposes Novo Nordisk's Catalent Takeover

By Ludwig Burger

FRANKFURT (Reuters) – Roche's CEO, Thomas Schinecker, urged authorities to block Novo Nordisk's proposed acquisition of contract drug manufacturer Catalent, highlighting potential competition concerns in the weight-loss drug sector.

Schinecker emphasized that limiting competition could negatively impact smaller players in the industry. Despite Roche not being directly affected, it was among the first to voice opposition over the significance of maintaining competitive dynamics related to GLP-1-based weight-loss drugs.

"Limiting competition in this space is not a good idea," Schinecker stated during a media call. He raised concerns over how fewer contract manufacturers could restrict market entry for others.

Last week, a coalition of U.S. advocacy groups petitioned the Federal Trade Commission to block the acquisition, citing risks to competition in weight-loss medications and gene therapies. Rival executives at Eli Lilly also expressed worries regarding the deal.

Novo Nordisk would gain ownership of three Catalent manufacturing sites in Italy, Belgium, and the United States as part of the transaction. Advocacy groups have indicated that companies like Amgen, Pfizer, Roche, and AstraZeneca could face constraints due to the acquisition.

In response, a Novo Nordisk spokesperson stated that the company plans to retain approximately 50 manufacturing sites independent of those acquired from Catalent, asserting that numerous contract drugmakers would still compete in the market.

Catalent maintains a pro-competitive stance regarding the acquisition and assures that no competitive GLP-1 products are produced at the sites targeted for acquisition. The company expects the transaction to close by the end of 2024.

Roche reassured that it has sufficient capacity for its future obesity drug production, using a combination of in-house and external manufacturing resources.