Roche FY Net Profit Down 22 Percent on Genentech Costs
Roche FY Net Profit Down 22 Percent on Genentech Costs
From Associated Press (February 3, 2010)
GENEVA--Drug maker Roche Holding AG on Wednesday reported a 22
percent drop in full-year net profit to 8.51 billion Swiss francs
($8.06 billion), citing costs linked to the takeover of
California-based Genentech.
Discounting one-off expenses, net profit attributable to Roche
shareholders would have fallen 9 percent to 9.8 billion francs, it
said.
"In a turbulent external environment Roche performed
extraordinarily well," said Chief Executive Severin Schwan.
Roche lagged behind Novartis, which posted a full-year net profit
of $10.27 billion last month, but once again edged out its
cross-town rival on sales, which rose 8 percent to 49.05 billion
francs ($46.44 billion) compared with $44.27 billion at
Novartis.
Core earnings per Roche share were up 10 percent to 12.19 francs.
The Basel-based company plans to raise its dividend per share by 20
percent to 6 francs.
Schwan said the integration of Genentech, which cost Roche some 2.4
billion francs in restructuring expenses last year, was "a major
step." Roche completed its $46.8 billion takeover in March after
overcoming strong opposition from a skeptical Genentech board. The
move helped boost Roche's income from cancer drugs Avastin and
Rituxan, which were both developed by the South San Francisco
biotech firm.
Roche expects mid-single digit growth in the coming year and Schwan
said the company has 10 new products in late-stage
development.
Sales of its best-selling antiviral drug Tamiflu, which soared last
year due to the swine flu pandemic, are predicted to fall to 1.2
billion francs from 3.2 billion francs in 2009, Roche said. Tamiflu
has proven effective in treating swine flu cases.
Posted: February 2010
