Roche (SWX: ROG), the Swiss pharmaceutical and diagnostics giant, reported a 3% year-on-year (YOY) decrease in turnover at constant exchange rates (CER) to CHF 15.3 billion (USD 17.2 billion) in its Q1 2023 report. The decline was attributed to the appreciation of the Swiss franc and a predicted drop in sales of SARS-CoV-2 tests. Despite this, Roche Group CEO Thomas Schinecker highlighted strong growth in the underlying base business across both divisions, with an 8% expansion.
Pharmaceuticals Division Outperforms with 9% YOY Increase
The pharmaceuticals division contributed CHF 11.7 billion (USD 13.1 billion) after a 9% YOY increase, with the bispecific antibody Vabysmo (faricimab) emerging as the strongest growth driver following its launch a year ago. The diagnostics division, however, saw a 28% YOY decline to CHF 3.6 billion (USD 4.1 billion).
Top-Performing Drugs and Market Performance
The best-performing drugs in Q1 were led by the ophthalmology injection Vabysmo with CHF 432 million (USD 485 million) in sales, followed by multiple sclerosis therapy Ocrevus (ocrelizumab) with a 14% YOY increase to CHF 1.6 billion (USD 1.8 billion), haemophilia treatment Hemlibra (emicizumab) with a 24% YOY jump to CHF 1.0 billion (USD 1.2 billion), spinal muscular atrophy medicine Evrysdi (risdiplam) with a 62% YOY surge to CHF 363 million (USD 408 million), and cancer immunotherapy Tecentriq (atezolizumab) with a 15% YOY growth to CHF 920 million (USD 1.0 billion). In contrast, established oncology therapies Avastin, Herceptin, and MabThera/Rituxan faced an estimated CHF 330 million (USD 371 million) drop in sales due to biosimilar competition.
Geographical Market Breakdown and China Growth
Roche’s key markets in the US, Europe, and Japan contributed CHF 5.8 billion (USD 6.6 billion), CHF 2.1 billion (USD 2.3 billion), and CHF 1.4 billion (USD 1.6 billion) after rising 6%, 5%, and 18% YOY respectively. The rest of the world expanded by 13% YOY to CHF 2.4 billion (USD 2.7 billion), with China’s growth of 4% driven by demand for Actemra, Tamiflu, and Xofluza, which more than compensated for biosimilar erosion.
Upcoming Developments and China-First Approvals
During the earnings call, Roche Pharmaceuticals CEO Teresa Graham emphasized the potential of rare disease drug crovalimab, an anti-C5 monoclonal antibody in development for complement-mediated diseases. Positive Phase III trial data for crovalimab in paroxysmal nocturnal hemoglobinuria (PNH) was published in November 2022, and Graham noted that the drug has been filed in China with breakthrough designation and priority review, expecting it to be Roche’s first China-first approval later this year, with global filings to follow.-Fineline Info & Tech
