Roche posts strong sales results
pharmafile | July 27, 2012 | News story | Sales and Marketing | Pegasys, Perjeta, Roche, Zelboraf, dalcetrapib
Roche has published healthy revenue growth for the first half of 2012, but its profits have taken a hit.
The Swiss firm grew at 4% to CHF 22.2 billion ($22.9 billion) at constant exchange rates, buoyed by a strong showing from its established products.
Its pharmaceutical division also grew by 4% to reach CHF 17.41 billion, with its biggest growth coming from the diagnostics division, up 5% to CHF 5 billion.
But profits took a battering and dropped 17% in local currencies compared to last year. This comes as the firm pays for ongoing restructuring costs of its R&D divisions, and the late-stage failure of its ‘good’ cholesterol drug dalcetrapib, which prompted the R&D cuts.
In the long-term however, Roche believes the restructuring at its Nutley, New Jersey R&D site announced last month would save it around CHF 370 million a year.
Roche’s chief executive Severin Schwan, said: “Our recent decision to close the Nutley site and the related consolidation of our research and early development activities at other sites will free up resources that we can invest in our promising clinical programmes.”
But the failure of dalcetrapib was a real hit for the firm’s future prospects, as it was estimated have brought in between $6 billion and $10 billion in peak annual sales, should it have been approved.
Strong showing from established medicines
The main growth drivers were Roche’s cancer medicines, which grew by 8 per cent.
Even its troubled cancer drug Avastin, which had its breast cancer licence revoked in the US last year and its use limited in Europe, managed a 3% growth, partly on the back on a new European licence for ovarian cancer.
Other key growth drivers include its hepatitis drug Pegasys (up 31%), rheumatoid arthritis treatment Actemra/RoActemra (up 39%), and the clinical laboratory business.
Geographically the firm saw a 3% drop in European sales as austerity measures in the region continue to affect all pharma firms.
But sales grew in the US by 6% on the back of demand for its oncology treatments, notably: Herceptin for breast cancer and MabThera for blood cancer.
Roche confirmed its full-year outlook for 2012 and expects low to mid-single-digit sales growth, at constant exchange rates, for the group and the pharmaceuticals division in 2012.
The firm added that despite a challenging market environment, Roche is aiming for a high single-digit increase in core earnings per share, again at constant exchange rates.
Looking ahead Roche is particularly excited by the prospects of its new melanoma drug Zelboraf, which was approved in the US last year and could be making peak annual sales of around $700 million.
In June the FDA approved Roche’s successor to Herceptin, the HER2+ breast cancer drug Perjeta, which has impressed in last-stage trials and is tipped as a future blockbuster.
Ben Adams
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