Roche sales up 6% in 2013
Led by new oncology, immunology and ophthalmology products
Swiss pharmaceutical giant Roche reported a 6% increase in group sales in 2013 to CHF46.8bn (US$51.7bn; €38bn), following strong demand for existing products and the launch of new oncology, immunology and ophthalmology products.
This sales performance contributed significantly to an 8% increase in the Group’s core operating profit and, combined with lower financing costs, a 10% rise in core earnings per share. IFRS net income rose 22% to CHF11.4bn.
Pharmaceuticals Division sales grew 7% to CHF36.3bn due to the continued strength of established and new medicines for cancer (HER2 franchise, Avastin and MabThera/Rituxan) as well as good growth in medicines for rheumatoid arthritis (Actemra/RoActemra) and eye diseases (Lucentis). Sales growth was strongest in the US (+10%) and emerging markets (+12%), which grew faster than Europe (+2%) and Japan (+2%).
Roche’s CEO Severin Schwan said 2013 was a 'very good year 'for Roche.
'We exceeded our financial targets with strong demand for our existing products and positive uptake of recently launched medicines and diagnostics. With the launch of Perjeta and Kadcyla we have added a new generation of treatments for women with a particularly aggressive type of breast cancer. Another highlight was the launch of Gazyva for chronic lymphocytic leukemia (CLL), in the US. With our strong product pipeline we are well positioned for future success.'
Pharmaceuticals sales were driven by growth for oncology products in the US (+10%) and the E7 emerging markets (+12%), especially China (+21%) and Brazil (+9%). Sales in Europe grew 2%, despite ongoing pricing pressure in key markets. In Japan sales increased 2%, despite the loss of sales following the termination of a co-marketing agreement for Evista, an osteoporosis treatment.
We exceeded our financial targets with strong demand for our existing products and positive uptake of recently launched medicines and diagnostics
Sales of the HER2 breast cancer franchise, which consists of Herceptin, Perjeta and Kadcyla, rose 14% to CHF6.6bn. In 2013 Roche received several important product approvals for the HER2 franchise in key markets: Kadcyla was approved in the US and the EU and Perjeta was approved in the EU for late-stage cancer. In October Perjeta was also approved for use in treatment of HER2-positive breast cancer prior to surgery (neoadjuvant setting) in the US. The HER2 franchise was further strengthened by EU approval of the subcutaneous formulation of Herceptin.
Sales of Avastin, which is used to treat a number of different types of cancer, increased 13% to CHF6.3bn due to strong demand for the treatment of advanced ovarian cancer in Europe, and colorectal cancer in the US and Europe. During 2013 Avastin was approved in Japan to treat ovarian cancer, as well as glioblastoma, a type of brain tumour.
Sales of Roche’s blood cancer and rheumatoid arthritis medicine MabThera/Rituxan increased 6% to CHF7bn. The outlook for the Group’s haematology franchise was enhanced by US approval of Gazyva to treat chronic lymphocytic leukemia (CLL), one of the most common forms of blood cancer. Late-stage trials investigating Gazyva in non-Hodgkin’s lymphoma (NHL), the most common cancer of the lymphatic system, are ongoing.
The rheumatoid arthritis drug Actemra/RoActemra recorded a 30% increase in sales to more than CHF1bn for the first time. The subcutaneous formulation of Actemra/RoActemra was approved in the US in October and has also received a positive recommendation from Europe’s regulatory agency. Roche’s immunology pipeline includes etrolizumab for inflammatory bowel disease and lebrikizumab for severe asthma.
Sales of Lucentis, which is used in the treatment of a number of eye diseases, rose 15% to CHF1.7bn. Roche has made further progress in strengthening its ophthalmology pipeline with lampalizumab, which showed promising Phase II clinical trial results in the treatment of geographic atrophy, an advanced form of dry age-related macular degeneration.
