Swiss pharmaceutical giant Roche Group (SWX: ROG) has released its half-yearly financial report for 2023, showing a -2% year-on-year (YOY) decline in group sales to CHF 29.8 billion (USD 34.5 billion) in constant exchange rate terms. Within the group, Pharmaceuticals saw an 8% YOY increase to CHF 22.7 billion (USD 26.3 billion), while Diagnostics experienced a COVID-linked -23% drop to CHF 7.1 billion (USD 8.2 billion).
Impact of COVID-Related Sales Loss
The loss of COVID-related sales was approximately CHF 5.5 billion (USD 6.4 billion). Excluding this impact, the underlying base business grew by around 8%. Roche executives are confident that the company remains on track to achieve the forecast full-year low-single-digit contraction in sales due to the loss of COVID revenues.
Pharmaceuticals Division Growth in China
In the Pharmaceuticals division, China’s sales grew by 3%, driven by products such as the Tamiflu flu vaccine, breast cancer therapy Perjeta (pertuzumab), flu drug Xofluza (baloxavir marboxil), COVID-19 and arthritis drug Actemra/RoActemra (tocilizumab), and the lymphoma antibody drug conjugate (ADC) Polivy (polatuzumab vedotin).
Top Performing Products and Pipeline Updates
The top growth driver in the Pharmaceuticals division was Vabysmo (faricimab), a VEGF inhibiting eye drug that generated CHF 1 billion (USD 1.2 billion) despite its launch only in early 2022. Other key products included Ocrevus (ocrelizumab) for multiple sclerosis, Hemlibra (emicizumab) for hemophilia, Evrysdi (risdiplam) for spinal muscular atrophy, and Phesgo (pertuzumab / trastuzumab / hyaluronidase) for breast cancer.
Challenges in Hemophilia Treatment Development
Roche’s H1 2023 presentation revealed that one new molecular entity (NME), RG6358 (SPK-8016), a gene therapy for hemophilia, was dropped from the pipeline at the Phase II stage. This therapy was originally acquired as part of the USD 4.3 billion acquisition of Spark Therapeutics in 2019. Another hemophilia therapy from Spark, RG6357 (SPK-8011), is continuing in development and has entered the Phase III stage, although Roche has downgraded its expected sales forecasts for this therapy if approved. Both therapeutics are designed to target moderate-to-severe hemophilia patients with inhibitors to Factor VIII. Additionally, four NMEs were discontinued at the Phase I stage, including RG6007, a potential first-in-class T-cell bispecific antibody targeting intracellular WT1 presented on HLA-A2, originally targeted towards blood cancers.-Fineline Info & Tech
