Swiss pharmaceutical giant Roche (SWX: ROG) has published its 2023 financial results, showing a modest 1% year-on-year (YOY) increase in global sales at constant exchange rates (CER) to CHF 58.7 billion (USD 68.5 billion). This growth was primarily due to a 6% YOY expansion in the pharmaceutical business to CHF 44.6 billion (USD 52.0 billion), which only partially offset a 13% decline in the diagnostics division to CHF 14.1 billion (USD 16.4 billion), reflecting poor industry-wide demand for COVID-19-related products. Excluding the loss of COVID-related demand, group turnover grew by 8% YOY.
Drug sales were propelled by high demand for newer products, led by multiple sclerosis therapy Ocrevus (ocrelizumab) with CHF 6.3 billion and a 13% YOY increase, antihemophilic Hemlibra (emicizumab) with CHF 4.1 billion and a 16% rise, and breast cancer treatment Perjeta (pertuzumab) with CHF 3.8 billion and a 1% growth. The recently launched ophthalmic bispecific antibody (BsAb) Vabysmo (faricimab) saw a remarkable growth of 324%.
The pharmaceuticals unit achieved CHF 8.3 billion in Europe and CHF 23.6 billion in the US after rising 6% and 8% YOY, respectively. However, it plummeted 14% in Japan to CHF 3.7 billion, dragged down by COVID-19 therapy Ronapreve (casirivimab + imdevimab). The international region grew the fastest at 13% to CHF 9.0 billion, partly driven by China’s 6% increase to CHF 2.9 billion, thanks to influenza medicines Tamiflu (oseltamivir) and Xofluza (baloxavir marboxil), spinal muscular atrophy (SMA) therapy Evrysdi (risdiplam), and cancer treatments Polivy (polatuzumab vedotin), Tecentriq (atezolizumab), Kadcyla (trastuzumab emtansine), Alecensa (alectinib), and Perjeta. On the downside in China, lower sales of the transplantation product CellCept (mycophenolate mofetil) and biosimilar erosion of oncology drugs MabThera/Rituxan (rituximab), Herceptin (trastuzumab), and Avastin (bevacizumab) were noted.
China contributed CHF 2.5 billion to the diagnostics division, up 7% YOY, driven in part by immunodiagnostic products. However, during the earnings call, the head of diagnostics Matt Sause revealed that the company anticipates a negative impact from an ongoing “government procurement initiative” in Anhui province targeting laboratory reagents, though specifics on the company’s involvement were not disclosed.- Flcube.com
