Investor Update

Basel, 10 July 2007

Actemra: latest phase III study shows significant improvement in symptoms of patients with rheumatoid arthritis
IL-6 receptor inhibition shows benefit in patients who failed to respond to anti-TNF therapy

Roche announced today that RADIATE¹, the third study in Actemra’s (tocilizumab) extensive multinational phase III development programme, successfully met its primary endpoint². The study examined Actemra in combination with methotrexate in rheumatoid arthritis (RA) patients who had an inadequate response to anti-tumour necrosis factor therapy (anti-TNFs).

The study conducted in 498 patients with difficult-to-treat RA disease, showed that a greater proportion of patients treated with Actemra plus methotrexate, achieved a significant improvement in disease signs and symptoms (ACR scores³) following 24 weeks of treatment, compared to patients treated with placebo plus methotrexate.

“RADIATE’s positive outcome further confirms the critical role of IL-6 in the pathophysiology of rheumatoid arthritis,” said Urs Schleuniger, Business Director, Inflammation and Autoimmune Disease, Roche Pharmaceuticals. “These results add to the wealth of data being compiled ahead of the anticipated regulatory filing later this year,”  he added.

About the RADIATE  study
The RADIATE study was a three-arm, randomised, double-blind, placebo-controlled study of the safety and reduction of signs and symptoms during treatment with Actemra (4mg/kg or 8mg/kg) versus placebo, in combination with methotrexate, in patients with moderate to severe active RA with an inadequate response to at least one anti-TNF therapy. Traditionally this patient group have more refractory disease and prove more difficult to treat. The study involved treating 498 patients randomised across three treatment groups and was conducted at 128 trial sites in 13 countries, including the United States. Each group of patients either received 4mg/kg or 8mg/kg Actemra, or placebo in addition to 10-25mg methotrexate weekly.

Data from the RADIATE study will be submitted for presentation at future international scientific meetings. Roche’s global Actemra phase III clinical development programme has two further studies underway, one of which is scheduled to report in 2007.

Previous studies
At the EULAR⁴ Conference in June, the OPTION⁵ study reported that treatment with Actemra plus methotrexate resulted in a rapid and significant improvement of RA signs and symptoms in patients who had an inadequate response to methotrexate. Additionally, the TOWARD⁶  trial successfully met its primary endpoint (ACR20) and demonstrated Actemra’s efficacy in patients who had an inadequate response to traditional disease modifying drugs (DMARDs).

About Actemra
Actemra is the first humanised interleukin-6 (IL-6) receptor inhibiting monoclonal antibody and represents a novel mechanism of action to treat RA, a disease with a high unmet medical need. The overall safety profile observed in the global studies of Actemra is consistent and  Actemra is generally well tolerated. The most frequent adverse events reported are upper respiratory tract infections, headache, nasopharyngitis and hypertension. As with other biological disease modifying anti-rheumatic drugs (DMARDs), serious infections have been reported in some patients treated with Actemra.
Roche and Chugai are collaborating on a phase III clinical development programme in RA running outside Japan, with more than 4000 patients enrolled in 41 countries including several European countries and the USA. In Japan, Actemra was launched in June 2005 as a therapy for Castleman's disease and in April 2006 filed for the additional indications of rheumatoid arthritis and systemic-onset juvenile idiopathic arthritis.

About rheumatoid arthritis
Rheumatoid arthritis is a progressive, systemic autoimmune disease characterized by chronic inflammation of multiple joints and fatigue as well as the possibility of osteoporosis, anaemia, and lung, skin and liver effects. This inflammation causes pain, stiffness and swelling, resulting in loss of joint function due to destruction of the bone and cartilage, often leading to progressive disability. Further, as chronic inflammation continues, there may be shortening of life expectancy as a result of effects on major organ systems. After 10 years, less than 50% of patients can continue to work or function normally on a day to day basis. RA affects more than 21 million people worldwide.

About Roche in rheumatoid arthritis
One of the most important drivers for growth at Roche over the next few years is expected to be the company’s emerging franchise in autoimmune diseases with rheumatoid arthritis as the first indication. Following the launch of MabThera® (rituximab) there are a number of projects in development, potentially allowing Roche to build on further opportunities. MabThera is the first and only selective B-cell therapy for RA, providing a fundamentally different treatment approach by targeting B cells, one of the key players in the pathogenesis of RA. Actemra is Roche’s second novel medicine and is a humanised monoclonal antibody to the interleukin-6 (IL-6) receptor, inhibiting the activity of IL-6 , a protein that plays a major role in the RA inflammation process. Actemra is the result of research collaboration by Chugai and is being co-developed globally with Chugai. Additional projects creating a rich pipeline include compounds in Phase I, II and III clinical trials. Notably, ocrelizumab, a humanised anti-CD20 antibody, has entered phase III development for RA.

About Roche
Headquartered in Basel, Switzerland, Roche is one of the world’s leading research-focused healthcare groups in the fields of pharmaceuticals and diagnostics. As the world’s biggest biotech company and an innovator of products and services for the early detection, prevention, diagnosis and treatment of diseases, the Group contributes on a broad range of fronts to improving people’s health and quality of life. Roche is the world leader in in-vitro diagnostics and drugs for cancer and transplantation, a market leader in virology and active in other major therapeutic areas such as autoimmune diseases, inflammation, metabolism and central nervous system. In 2006 sales by the Pharmaceuticals Division totalled 33.3 billion Swiss francs, and the Diagnostics Division posted sales of 8.7 billion Swiss francs. Roche employs approximately 75,000 worldwide and has R&D agreements and strategic alliances with numerous partners, including majority ownership interests in Genentech and Chugai. Additional information about the Roche Group is available on the Internet at www.roche.com.

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References:
1) RADIATE refers to Research on Actemra Determining effIcacy after Anti-Tnf FailurEs
2) The proportion of patients who achieved ACR20 at week 24
3) The ACR response is a standard assessment used to measure patients’ responses to anti-rheumatic therapies, devised by the American College of Rheumatology (ACR). It requires a patient to have a defined percentage reduction in a number of symptoms and measures of their disease. For example, a 20%, 50% or 70% level of reduction (the percentage of reduction of RA symptoms) is represented as ACR20, ACR50 or ACR70. An ACR70 response is exceptional for existing treatments and represents a significant improvement in a patient’s condition.
4) EULAR relates to the European League Against Rheumatism
5) OPTION refers to the TOcilizumab Pivotal Trial in Methotrexate Inadequate respONders
6) TOWARD refers to Tocilizumab in cOmbination With traditional DMARD therapy