Roche reports solid sales growth in the first quarter of 2016
Basel, 19 April 2016
- Group sales up 4%1 at constant exchange rates, 5% in Swiss francs
- Pharmaceuticals Division sales increase 4%, driven by oncology and immunology medicines
- Diagnostics Division sales grow 5%, led by immunodiagnostic product demand
- US FDA grants priority review for investigational cancer immunotherapy medicine atezolizumab in bladder and lung cancer and breakthrough therapy designation for ocrelizumab in multiple sclerosis
- Outlook for 2016 confirmed
|In millions of CHF||As % of sales||% change|
|2016||2015||2016||2015||At CER||In CHF|
|- United States||4,716||4,392||38||37||+3||+7|
* Asia–Pacific, EEMEA (Eastern Europe, Middle East, Africa), Latin America, Canada, Others
Roche CEO Severin Schwan said: “We have started the year with solid growth in both our Pharmaceuticals and Diagnostics Divisions. The marketing applications of important investigational medicines are well underway. The FDA granted priority review for atezolizumab in two indications and breakthrough therapy designation for ocrelizumab in primary progressive multiple sclerosis. Overall, we are on track to meet our full-year targets for 2016.”
In the first quarter of 2016, Group sales rose 4% to CHF 12.4 billion. Sales in the Pharmaceuticals Division were up 4% to CHF 9.8 billion with Europe growing 5%, driven by Perjeta, MabThera and RoActemra. Pharmaceuticals sales in the US increased 3%, led by Esbriet, Xolair and HER2-positive breast cancer medicines. The recently launched medicines Cotellic in skin cancer and Alecensa in lung cancer have had a good start. In the US, sales of Tamiflu and Lucentis declined. The main growth contributors in the International region (+4%) were Avastin, MabThera and Herceptin; this growth was partly offset by lower Pegasys sales due to competition from a new generation of treatments. In Japan, sales rose 4% driven by Avastin, HER2 medicines and Alecensa.
In Diagnostics, sales grew 5% to CHF 2.6 billion, driven primarily by strong growth in Asia-Pacific (+16%) and Latin America (+21%). In Europe, the Middle East, and Africa (EMEA) sales increased 1% while they remained stable in North America and declined by 3% in Japan. Strong growth was recorded for the immunodiagnostic, molecular and tissue diagnostics businesses. Diabetes Care sales were impacted by challenging market conditions, especially in North America.
In March and April respectively, Roche's lead investigational cancer immunotherapy medicine atezolizumab was granted priority review by the FDA for marketing applications in two indications, advanced bladder cancer and non-small cell lung cancer (NSCLC). Both filings were submitted under FDA breakthrough therapy designations and are based on pivotal phase II data. Atezolizumab is being investigated in a broad phase III clinical programme in solid and hematologic cancers.
The FDA granted breakthrough therapy designation (BTD) for ocrelizumab in primary progressive multiple sclerosis in February. Ocrelizumab is the first investigational medicine to receive BTD in multiple sclerosis. Since 2013, the FDA has granted BTDs for 12 indications of Roche medicines. Roche plans to file ocrelizumab for both relapsing and primary progressive multiple sclerosis in the first half of 2016.
In March, Roche provided an update on two identical phase III studies of lebrikizumab in people with severe asthma. While one study met its primary clinical endpoint, the second did not achieve statistical significance. Roche is analysing the data to help determine next steps in the asthma programme.
In April, the FDA granted Venclexta (venetoclax) accelerated approval for people with a hard-to-treat type of chronic lymphocytic leukemia. Venclexta is the first approved medicine designed to help restore a process in which cells self-destruct by selectively blocking a protein called BCL-2. Venclexta is being jointly developed with AbbVie.
In February, Roche received US approval for Gazyva for the treatment of people with relapsed or rituximab-refractory follicular lymphoma, the most common type of indolent non-Hodgkin lymphoma (NHL), based on phase III results. European approvals are expected later this year. Gazyva is being studied in a large clinical programme in NHL, and phase III data in diffuse large B cell lymphoma, an aggressive type of NHL, are expected later this year.
Outlook for 2016
In 2016, Roche expects sales to grow low- to mid-single digit at constant exchange rates. Core earnings per share are targeted to grow ahead of sales at constant exchange rates. Roche expects to further increase its dividend in Swiss francs.
Roche is a global pioneer in pharmaceuticals and diagnostics focused on advancing science to improve people’s lives.
Roche is the world’s largest biotech company, with truly differentiated medicines in oncology, immunology, infectious diseases, ophthalmology and diseases of the central nervous system. Roche is also the world leader in in vitro diagnostics and tissue-based cancer diagnostics, and a frontrunner in diabetes management. The combined strengths of pharmaceuticals and diagnostics under one roof have made Roche the leader in personalised healthcare – a strategy that aims to fit the right treatment to each patient in the best way possible.
Founded in 1896, Roche continues to search for better ways to prevent, diagnose and treat diseases and make a sustainable contribution to society. Twenty-nine medicines developed by Roche are included in the World Health Organization Model Lists of Essential Medicines, among them life-saving antibiotics, antimalarials and cancer medicines. Roche has been recognised as the Group Leader in sustainability within the Pharmaceuticals, Biotechnology & Life Sciences Industry seven years in a row by the Dow Jones Sustainability Indices.
The Roche Group, headquartered in Basel, Switzerland, is active in over 100 countries and in 2015 employed more than 91,700 people worldwide. In 2015, Roche invested CHF 9.3 billion in R&D and posted sales of CHF 48.1 billion. Genentech, in the United States, is a wholly owned member of the Roche Group. Roche is the majority shareholder in Chugai Pharmaceutical, Japan. For more information, please visit www.roche.com.
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1 Unless otherwise stated, all growth rates in this document are at constant exchange rates (CER: average 2015).
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This document contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘believes’, ‘expects’, ‘anticipates’, ‘projects’, ‘intends’, ‘should’, ‘seeks’, ‘estimates’, ‘future’ or similar expressions or by discussion of, among other things, strategy, goals, plans or intentions. Various factors may cause actual results to differ materially in the future from those reflected in forward-looking statements contained in this document, among others: (1) pricing and product initiatives of competitors; (2) legislative and regulatory developments and economic conditions; (3) delay or inability in obtaining regulatory approvals or bringing products to market; (4) fluctuations in currency exchange rates and general financial market conditions; (5) uncertainties in the discovery, development or marketing of new products or new uses of existing products, including without limitation negative results of clinical trials or research projects, unexpected side effects of pipeline or marketed products; (6) increased government pricing pressures; (7) interruptions in production; (8) loss of or inability to obtain adequate protection for intellectual property rights; (9) litigation; (10) loss of key executives or other employees; and (11) adverse publicity and news coverage. The statement regarding earnings per share growth is not a profit forecast and should not be interpreted to mean that Roche’s earnings or earnings per share for 2016 or any subsequent period will necessarily match or exceed the historical published earnings or earnings per share of Roche.