How has demand for Roquette’s products evolved in the past few years?

As one of the world’s major excipient suppliers, Roquette has witnessed interesting trends over the past few years. When Covid-19 first erupted, consumers stocked up on cold medications and other OTC drugs. We are a major supplier of excipients and other substances that go into these products, so we saw a significant spike in demand. After this wave, we turned towards working with customers on experimental cures and vaccines themselves. Given the unprecedented pace at which vaccine work advanced from small volumes, to initial clinical trials, to massive quantities for production, we had to expand our production facilities to keep up with demand.

Roquette is currently seeing demand rise again for its pharmaceutical offer as economies are opening up. For example, from the second half of 2020 through 2021, demand for cold and flu medications was 2% of what it historically is. Now that families are interacting again, demand is coming back.

How important is the pharmaceuticals industry to Roquette? 

Roquette has two main divisions: plant proteins and pharmaceuticals. The latter is strategically important for the company and we will continue to expand our offerings here. We recently made acquisitions to add cellulose to our portfolio, a substance sometimes used in tablets. Roquette is also the largest supplier of ingredients that go into tablets that melt in your mouth. Meltables have enormous potential, not only for those who have difficulty swallowing, but also from a compliance standpoint as doctors can be more positive that patients are taking their medication.

What role does the US play in Roquette’s pharmaceuticals operations?

The US has a massive pharmaceutical market — 45% of new drug development is done in the country. As such, it is a strategically important place for Roquette to expand. We are creating a facility in the country to support our customers in formulation work and opening a new R&D lab in this space. We will move our pharma headquarters to Philadelphia to be at the center of the action.

Another strategy for growth in the US is through M&A activity. Our main business comprises of excipients for oral dosage, and we continue to look for acquisitions to add to that portfolio. We would especially like to add to our biopharmaceutical offerings, a space we entered around five years ago that now comprises a good part of our business.

How has Roquette responded to supply chain challenges caused by the pandemic?

We are vertically integrated so we have a reliable supply of products. Our sales team works with the procurement people of our customers to understand their particular supply chain challenges and needs. Roquette has many factories around the world that make pharmaceutical products as well as global warehousing facilities, which means we are able to produce locally and keep products on the continent ahead of time. We have to take advantage of this lead time given the massive shipping shortages that will likely continue through 2022.

Have you noticed a shift towards sourcing locally within the broader pharmaceutical industry?

From a national security standpoint, healthcare is imperative for every country. While the US has a strong footprint in pharmaceutical manufacturing, core questions center around APIs, given many come from China and India. When the pandemic first hit, these countries announced they would be keeping much of the product for themselves, emphasizing the need for local production more than ever. We do not believe this trend will subside, which is a main reason we are strengthening our footprint in the US.

What trends do you see in the demand for nutraceuticals?

Roquette will continue investing in the nutraceutical side of its business. Increasingly people want to make choices at the pharmacy that impact what they put in their bodies, such as deciding between a plant-based soft gel or an animal derived product. We just launched LYCAGEL as an alternative to animal-derived gelatins. Similarly, we have launched gluten-free products like Mannitol, a low hygroscopic bulk sweetener. With the pandemic people are more conscious than ever about what they put in their bodies and how to stay healthy. Roquette believes the nutraceutical market will continue to grow.

How would you define the current state of the pharmaceutical industry, and what goals do you have for Roquette in 2022?

Over the past few years we have seen unparalleled cooperation in the pharmaceutical industry. The DNA map of the virus was shared globally to allow for expedient collaboration to quickly discover vaccines. Partnerships between governments and the pharma industry were heartwarming. The US invested US$13 billion into the development of vaccines, which shows how strong the partnership can be to get desired results.

Roquette will continue growing faster than the marketplace, focusing on its patient-centric dosages that help it partner with customers. The US innovation center will play a large role in this journey.