Roche (SWX: ROG) released its 2024 annual financial report on January 30, showing a 7% year-on-year increase in revenue to CHF 60.495 billion (USD 68.892 billion), calculated based on the average exchange rate of 2024 (1 CHF = USD 1.1388). The company’s R&D expenditure reached CHF 13.042 billion (USD 14.852 billion), accounting for approximately 21.6% of total revenue.
Business Segments
Roche’s business is primarily divided into pharmaceuticals and diagnostics. In 2024, global pharmaceutical revenue reached CHF 46.171 billion (USD 52.580 billion, +8%), while global diagnostics revenue was CHF 14.324 billion (USD 16.312 billion, +4%).
China Performance
In China, Roche’s pharmaceutical revenue grew by 6% to CHF 2.926 billion (USD 3.332 billion), accounting for 6.3% of global pharmaceutical revenue. Diagnostic revenue increased by 1% to CHF 2.402 billion (USD 2.735 billion). Combined, the two segments generated CHF 5.328 billion (USD 6.068 billion) in China.
Therapeutic Areas
Roche’s pharmaceutical business saw growth across several therapeutic areas, including oncology (+3%), hematology (+15%), neurology (+13%), immunology (+5%), and ophthalmology (+44%). Notably, ophthalmology showed strong growth, driven by the success of the bispecific antibody Vabysmo (faricimab).
Vabysmo and Ocrevus
Vabysmo, approved in the US in January 2022, achieved global sales of CHF 3.864 billion (USD 4.400 billion, +68%) in its third year on the market. The drug is approved for three major retinal diseases: neovascular (wet) age-related macular degeneration (nAMD), diabetic macular edema (DME), and retinal vein occlusion (RVO). In July 2024, the FDA approved the 6.0mg single-dose pre-filled syringe for Vabysmo, enhancing its market potential with improved ease of use and reduced risk of contamination.
Ocrevus, a leading multiple sclerosis drug, generated CHF 6.744 billion (USD 7.680 billion) in 2024, with a 9% year-on-year increase. Roche launched the subcutaneous formulation of Ocrevus in Europe and the US this year, requiring only two injections per year and a 10-minute injection time. Additionally, Roche is developing a higher-dose version of Ocrevus, currently in Phase III clinical trials, with plans to file for approval in 2025.
Oncology Highlights
Phesgo, a HER2 antibody combination for breast cancer, contributed CHF 1.740 billion (USD 1.982 billion) to Roche’s oncology revenue, with a 62% year-on-year increase. The launch of PI3Kα inhibitor Itovebi in the US in October 2024 added CHF 0.08 billion (USD 0.09 billion) to sales within two months. Roche is also developing the next generation of breast cancer products, including the acquisition of Rigel Pharmaceuticals’ CDK inhibitor for CHF 850 million upfront, featuring potential best-in-class CDK2/4 inhibitor RGT-419B and brain-penetrant CDK4 inhibitor RGT-587.
Pipeline and Future Outlook
Roche expects to release data from its GLP-1R/GIPR dual agonist CT-868 for type 1 diabetes with obesity in 2025. The company’s pipeline includes over seven new molecular entities with potential peak sales exceeding CHF 3 billion and four entities with potential peak sales between CHF 2 billion and CHF 3 billion. Roche has discontinued several late-stage and early clinical studies for the TIGIT monoclonal antibody tiragolumab.
CEO Statement
Roche CEO Thomas Schinecker said, “2024 was a strong year for Roche. We are proud to have positively impacted patients’ lives through the launch of two new drugs—Itovebi for breast cancer and PiaSky for blood disorders—as well as new continuous glucose monitoring solutions and innovative automated mass spectrometry systems. Last year, we significantly strengthened our R&D pipeline through the acceleration of key internal projects and new partnerships and acquisitions. Roche is well-prepared for future growth.” Looking ahead to 2025, Roche expects group sales to grow in the mid-single digits (CER).-Fineline Info & Tech
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