Roche achieves record sales in 2005

Following the European authorities' approval of Tamiflu (oseltamivir) for the prevention of influenza in children aged one to 12 years, Roche (Basel, Switzerland) has announced record sales and operating profit for 2005.

The company experienced a 20% increase in sales for the year, which jumped from CHF29.5bn to CHF35.5bn, while operating profit (before exceptional items) rose to CHF9.0bn, marking a 33% upturn on the CHF6.8bn attained in 2004.

Overall, net income for the group fell by 5% from the CHF7.1bn attained in 2004, ending up at CHF6.7bn, but the company was keen to point out that it reaped CHF2.3bn in 2004 from the sale of its OTC businesses.

Despite the expiry in July of the US patent on Rocephin, which posted sales of over CHF1.0bn in 2004, the increase in sales was primarily driven by the company's pharmaceutical division, which experienced 26% growth in sales, four times the global market average, attaining a record total of CHF27.3bn, following a 42% increase in sales of anticancer drugs. The CHF11bn that they brought in means that oncology products now account for 40% of sales in the pharmaceutical division.

Meanwhile Tamiflu, whose production has been expanded in an attempt to meet the huge demand raised by fears of a bird flu pandemic, recorded worldwide sales of CHF1.6bn.

In its first full year on the market Tarceva generated 'robust sales'. Approved for second- or third-line treatment of non-small cell lung cancer, it is yet to reach some EU markets following approval there in September 2005, and will be boosted by November's FDA approval for the treatment of advanced pancreatic cancer; a filing for which was submitted to EU regulators in October.

Bonviva/Boniva, the only once-monthly oral bisphosphonate approved for the treatment of postmenopausal osteoporosis, launched by Roche and GlaxoSmithKline (GSK) in the US in April and in the EU in September, scored sales of CHF86m. In January 2006 its injection format became the first intravenous medication to be approved in the US for the treatment of postmenopausal osteoporosis.

There have also been 'positive results' from phase III clinical trials in rheumatoid arthritis and breast, lung and pancreatic cancers. Two years' maintenance therapy with MabThera/Rituxan has been shown to 'dramatically improve' the chances of survival of patients suffering from indolent non-Hodgkin's lymphoma (NHL), and Avastin has shown 'significant survival benefit' in metastatic non-small cell lung cancer and metastatic breast cancer.

The company's diagnostics division reported CHF8.2bn sales, marking a 5% increase on 2004, and CHF1.7bn operating profit, marking a 1% increase on 2004 in CHF but a 1% decrease in local currencies.

The division launched more than 20 products in 2005, including a complete new generation of products to replace older flagship offerings in diabetes care, where it posted sales of CHF2.9bn, marking a 4% increase. The new products include Accu-Chek Compact Plus, a glucose monitoring system with a built-in test strip drum and lancing device, and Accu-Chek Aviva, a successor to the Accu-Chek Advantage monitor.

r&d spending for the year totalled CHF5.7bn, an 11% upturn on the CHF5.2bn spent in 2004. CHF5bn of this was spent in the pharmaceuticals division, marking a 12% increase on its r&d spend for 2004. Its r&d pipeline currently comprises 108 projects, including 59 new molecular entities (NMEs) and 49 additional indications.

The company said 2005 had seen 'further significant improvement' in its financial position, with the ratio of equity to total assets now standing at 60%. It reaffirmed its positive outlook for 2006, and its board will propose a dividend increase of 25% to CHF2.5 per share at its AGM.