Innovation and growth

Roche equity story

Innovation and growth

Our aim is to discover, develop and market innovative solutions that bring clear medical benefit in disease areas with high unmet medical need.

Group highlights

Roche in a nutshell

Group highlights

  • Founded 1896 in Basel, Switzerland
  • Founding families still hold a majority of voting shares
  • 2015 key figures
    • Employees: 91,747 worldwide, active in over 100 countries
    • Group sales: CHF 48.1 bn (+5% CER1)
    • Core operating profit: CHF 17.5 bn (+5% CER1 or +7%1 excluding filgrastim2)
  1. CER: Constant exchange rates (average full-year 2014)
  2. Refers to the sale of filgrastim rights in 2014
Leader in healthcare

Roche group

Leader in research-focused healthcare

Roche group

2015 Sales

Pharma: CHF 37.3 bn
Pharma + Diagnostics: CHF 48.1 bn
Diagnostics: CHF 10.8 bn

Our strategy

We remain focused on developing medically differentiated therapies and diagnostics in areas of high unmet need despite industry challenges…

Healthcare industry challenges

Roche group

Healthcare industry challenges

  • Future of healthcare systems / Drug prices
    Straining budgets
    Reimbursement of innovation
  • Corporate governance
    Board performance
    Remuneration
  • R&D productivity
    Rising R&D costs/output
    Weak pipelines
    Level of medical value
  • Patient safety
    Clinical trial disclosure
    Adverse events
  • Policy changes
    Transparency lobbying
    Tightening regulations
  • Marketing practices
    Payments to HCPs. Fines.
    Ethics in emerging coutries
  • Biosimilars
    When will they arrive and how much market will they take
  • Employees
    Retention/Attraction of talent, diversity, human rights

Roche strategy

Focused on differentiated medicines

Focused on differentiated medicines

Only high medical differentiation will facilitate reimbursement – we must make a difference for patients…
… leading to an optimised

  • benefit / risk ratio for regulators and
  • benefit / cost ratio for payers

With our combined strength in pharmaceuticals and diagnostics, we are better equipped than any other company to further drive personalised healthcare. Two-thirds of our R&D projects are being developed with companion diagnostics.

Roche Pharmaceuticals

Focused on first and best in class therapies

Roche Pharmaceuticals

Key growth-driving products in 2015 (in millions of CHF)

Avastin

Avastin

Oncology

6,684

+9% growth1

Herceptin

Herceptin

Oncology

6,538

+10% growth1

Lucentis

Perjeta

Oncology

1,445

+61% growth1

Tarceva

Kadcyla

Oncology

769

+51% growth1

Tarceva

Esbriet

Immunology

563

+ >500% growth1

  1. At constant exchange rates

Roche Pharmaceuticals

Industry leading medicines as basis for our continuous growth

Sales excluding OTC at 2014 average exchange rates;
Note: Approved medicines shown do not represent the entire portfolio rather a selection; timeline reflects year of approval

Diagnostics

Industry leader in in vitro diagnostics

Roche Diagnostics

Diagnostics top-selling products (CHF millions)

cobas e602

cobas e602

Immunodiagnostic

3,019

+13% growth1

Accu-Chek Aviva Nano

Accu-Chek Aviva Connect

Diabetes care

2,128

-3%1

cobas c502

cobas c502

Clinical chemistry

1,591

+3% growth1

Ventana HE 600

Ventana HE 600

Tissue diagnostics

792

+12% growth1

cobas 8800

cobas 8800

Virology

584

+14% growth1

  1. At constant exchange rates

Our key success factors in the new environment

  • Best Science
  • Smart Development
  • Innovative Business Model

Investing in innovation

Innovation is our lifeblood. We invest about 9 billion Swiss francs in research and development every year. This is amongst the highest R&D spends in the world across all industries.

Pipeline

Roche has one of the strongest drug development pipelines in the industry.

Find out more about our Pipeline

Sustainability

Sustainability is an integral part of the way we do business - now and in the future.

ROBECOSAM

Ranked as the most sustainable healthcare company by the Dow Jones Sustainability Indices for the 7th consecutive year

CDP

Recognised by CDP for our climate change mitigation strategy

Our key performance indicators

Financial summary

2015 was a successful year, with strong business results in both Pharmaceuticals and Diagnostics, driven by our newly launched medicines and diagnostic platforms. I am particularly pleased with the progress of our product pipeline. We reported important clinical data across several areas including cancer, multiple sclerosis, immune and blood diseases. Based on our strong product portfolio and promising pipeline, we are well positioned for the future.
Severin Schwan CEO Roche Group

2015:

  • Operating free cash flow and margin

  • Strong underlying Group Core operating profit & margin

  • Operating free cash flow and margin

  • Group net debt development: Stable vs. 2014

  • Dividend and payout ratio further increased

2015 outlook

2016 outlook

  • Group sales growth1: Low to mid-single digit
  • Core EPS growth1: Ahead of sales growth
  • Dividend: Further increase dividend in Swiss francs
  1. At constant exchange rates