Roche reports further accelerated sales growth in third quarter
Full-year outlook raised, new Group management team
appointed
• Group sales up 3.1 billion to 36.4 billion Swiss francs in
first nine months, an increase of 11% in local
currencies (9% in Swiss francs); both divisions grow significantly
faster than their respective markets1
• Genentech integration progressing successfully
• New Group leadership appointed
Full-year outlook raised
• Roche now expects at least high single-digit full-year sales
growth for Pharmaceuticals Division; full-year
2009 sales in both divisions expected to grow well ahead of
market
• Roche confirms target of double-digit Core EPS growth in
2009 and 2010 (at constant exchange rates)
Pharmaceuticals Division sustains growth at twice the market
average
• Pharma sales grow 12% (11% in Swiss francs) driven by
continued strong performance of leading
anticancer medicines, Lucentis, Pegasys and Mircera
• Strong demand for Tamiflu continues in third quarter:
full-year sales expectation raised from 2.0 to
around 2.7 billion francs in 2009 and from 400 million to about 700
million francs in 2010
• MabThera receives EU approval for the treatment of relapsed
or refractory chronic lymphocytic leukemia
• Avastin receives US FDA approval for kidney cancer and
broader EU approval for breast cancer
• Positive market response to ongoing rollout of RoActemra in
EU, market penetration of Actemra in
Japan progressing well
Diagnostics Division significantly outperforms the market
• Divisional sales grow 8% (4% in Swiss francs) — more
than twice as fast as the global IVD market —
driven by all Business Areas, especially Professional
Diagnostics
• cobas 8000 modular analyser series receives CE Mark
certification for high-throughput clinical chemistry
and immunoassay testing
1
Unless otherwise stated, all growth rates are in local currencies Barring unforeseen events.
BASEL, Switzerland, Oct. 15, 2009--Commenting on the
Group’s nine-month sales figures, Roche CEO Severin Schwan
said: ‘The Roche Group continued to perform very strongly in
the third quarter. Sales by both the Pharmaceuticals and
Diagnostics divisions are significantly outgrowing their respective
markets. Based on this performance, we expect another very good
full-year result. I’m particularly pleased with the excellent
progress we’re making in joining forces
with Genentech. The new leadership structure we announced recently
will ensure that we continue to translate excellent science into
innovative medicines for patients.’
Roche Group
Strong sales growth in third quarter
The Roche Group recorded sustained strong sales growth in the first
nine months of 2009. Group sales grew
11% in local currencies (9% in Swiss francs; 4% in US dollars) to
36.4 billion Swiss francs. The
Pharmaceuticals Division’s sales increased 12% in local
currencies (11% in Swiss francs; 6% in US dollars) to
29.0 billion Swiss francs, maintaining growth at twice the global
market rate. The Diagnostics Division also
continued to outpace market growth, with sales up 8% in local
currencies (4% in Swiss francs; -1% in US
dollars) to 7.4 billion Swiss francs
Genentech integration on track, new leadership structure
announced
Following the merger agreement with Genentech in March of this year
and the rapid completion of the
transaction, integration activities have been proceeding
successfully and are already yielding substantial
productivity gains. The integration will be largely complete by the
end of the year. As announced in
September, from January 2010 a newly structured Corporate Executive
Committee will continue to
implement Roche’s focused strategy built around the
combination of pharmaceuticals and diagnostics. The
broader leadership structure will ensure a diversity of approaches
and help drive innovation in the key areas
of research and early development. In addition, the integration of
Genentech and Roche will enhance the
Group’s innovative capabilities by facilitating knowledge
transfer within the Group. Combining the two
companies’ late-stage product development, manufacturing and
commercial operations will enable the Roche
Group to leverage its global scale, as well as achieving
efficiencies.
Outlook
Based on the sales results of the nine months, Roche has raised its
full-year outlook for 2009. The Group now
expects full-year sales in both divisions to grow well ahead of the
market, with at least high single-digit sales
growth for the Pharmaceuticals Division. The Group is aiming for
double-digit Core EPS growth in both
2009 and 2010 (at constant exchange rates). Given the rapid
progress in integrating Genentech, Roche
expects to see further productivity gains next year. By 2011 the
Group aims to achieve pre-tax annual
synergies of approximately 1 billion Swiss francs. Based on the
strong operating free cash flow, Roche expects
to reduce debt progressively and to return to a net cash position
by 2015 while maintaining its dividend
outlook.
For full report click here.
Posted: October 2009
