Astrazeneca says Catalent deal shows need for in-house capacity (updated)

Catalent

08/02/2024 11:37

(Adds details, quotes in paragraphs 3 to 6)
    By Maggie Fick and Eva  Mathews
       LONDON, Feb 8 (Reuters) - The sale of listed contract
drugmaker Catalent  CTLT.N  to the parent of Novo Nordisk
 NOVOb.CO  this week demonstrates the importance for big pharma
companies of building an independent supply chain, Astrazeneca
 AZN.L  said Thursday. 
    AstraZeneca, which is a client of Catalent for some of its
drug manufacturing, is working to boost its in-house capacity to
cut reliance on contract drugmakers, Chief Executive Pascal
Soriot told reporters after the release of fourth-quarter
results.
    "It really means for us that we need to be as independent as
we can, in terms of our own supply", said Soriot, citing
AstraZeneca's ongoing capital expenditures including its $300
million investment announced on Tuesday in a facility in
Maryland for discovery and development of cell therapies.
    "There is a lot more to do", Soriot said of AstraZeneca's
need to spend more to build its manufacturing capacity to
produce its portfolio of medicines. 
    Soriot was responding to the announcement by Novo Nordisk's
parent company Novo Holdings on Monday that it was buying
Catalent for $16.5 billion. 
    The market interpreted the purchase as a win for Novo in the
competitive race between with U.S. rival Eli Lilly  LLY.N  and
potentially other companies trying to develop more obesity
drugs. 
    Analysts have estimated the market could be worth as much as
$100 billion by the end of the decade, but ramping up production
is a major hurdle.
    Soriot's comments reflect the pharma industry's close
monitoring of developments with Catalent. One of the largest
contract drugmakers globally, Catalent has struggled with
manufacturing problems and last year became the target of
takeover interest from both private equity firms and strategic
buyers.
    After the announcement of Catalent's sale on Monday, it was
not immediately clear which pharma companies would be affected.
Soriot said Catalent had since been in touch to confirm it will
continue supplying companies it has contracts with.

 (Reporting by Maggie Fick in London and Eva Mathews in
Bengaluru
Editing by David Goodman and Barbara Lewis)
 ((maggie.fick@thomsonreuters.com; +44 7890 916706;))