Roche shuns mergers

ZURICH, April 16 (Reuters) - Roche Holding expects flagship drug sales to accelerate after rising six percent in the first quarter, Chairman and Chief Executive Franz Humer said on Tuesday, adding the Swiss healthcare group was not interested in a major merger or acquisition.

"I would say that we would see an acceleration (in drug sales), especially in the second half of the year, with the introduction of new products, with the acceleration also of the penetration of the oncology line in the non-U.S. markets," Humer told Reuters in a telephone interview.

He stressed that first-quarter sales growth of six percent was fully in line with the firm's expecations and guidance to financial markets, and noted that Roche's development of new products and regulatory approval timetable was on track.

Roche has said drug sales should rise by a mid-single-digit percentage rate this year.

Humer said Roche was happy to have licensed in three potentially major drug products and said a few more such deals could follow this year.

Some other drugmakers have experienced problems with inventory build-ups early this year, but Humer said Roche had taken steps to avoid this problem.

"We have taken a hard look at that. We did not have anything of that. On the contrary, on a number of our products the inventories are lower than they usually are," he said, citing as an example good U.S. sales of antibiotic Rocephin.

Humer acknowedged a 17 percent decline in first-quarter sales of anti-obesity drug Xenical was "somewhat disappointing," but added he expected sales to recover. Flat full-year sales "should still be possible. I would even venture to say I would like to see some positive growth," he said.

Humer reiterated that Roche was not interested in a merger with Swiss rival Novartis , which built up a 21.3 percent voting stake in Roche last year, sparking market talk the two could combine into a Swiss drugs powerhouse.

He also dismissed speculation that Roche could be interested in a major strategic deal with U.S. drugmaker Bristol-Myers Squibb Co, whose slumping share price has made it an object of takeover talk.

"I maintain my stance of being opposed to these mega-mergers or acquistion deals because I do not believe that they really long-term create competitive advantage and value."

Asked specifically about Bristol-Myers Squibb, he said: "With our two strong pillars of diagnostics and pharmaceutcals, with the fact of separating ourselves in the coming months from the vitamins division, we are really positioning ourselves in the right way," he said.

Humer said Roche was still reviewing its options for the vitamins and fine chemicals division. Either a trade sale or demerger -- via a spinoff to existing shareholders, an initial public offering, or a combination of the two -- was possible.