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Roche first-half sales hit by strong Swiss franc

Published 24/07/2014, 06:30
Roche first-half sales hit by strong Swiss franc
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BASEL (Reuters) - Swiss drugmaker posted a slight fall in sales in the first half, as the strong Swiss franc put the brakes on solid growth of its breast cancer medicines.

The world's largest maker of cancer drugs said first-half sales fell 1 percent to 22.97 billion Swiss francs (14.9 billion pound), generating "core" earnings per share of 7.57 francs.

Analysts in a Reuters poll had forecast sales to decline 1 percent to 22.98 billion francs and core earnings per share of 7.50 francs.

Excluding the impact of currencies, sales were up 5 percent, while core EPS rose 7 percent.

Net profit fell 7 percent to 5.64 billion francs, hit by a 414 million writedown on its tissue diagnostics business.

Unlike other pharmaceutical companies that have mostly put the worst of patent losses behind them, Roche may yet face a challenge to its older cancer medicines once cheaper, copycat versions of these biotech drugs known as "biosimilars" arrive.

The Basel-based firm has pushed ahead with developing "follow-on" medicines which it hopes will defend sales in its breast and blood cancer businesses.

Sales of Perjeta, which targets the same protein found on some cancer cells as Roche's older blockbuster Herceptin, surged 276 percent to 388 million francs. Fellow breast cancer drug Kadcyla notched up 227 million in sales, compared to 83 million a year earlier.

Roche has also won approval for Gazyva, a follow-on to its top-seller MabThera in the United States and Europe. The drug, which is known as Gazyvaro in Europe, chalked up sales of 18 million in the first half.

Roche confirmed guidance for low-to-mid single-digits sales growth this year, while expecting core earnings per share (EPS) to grow ahead of sales. It also plans a higher dividend.

© Reuters. The logo of Swiss pharmaceutical company Roche is seen outside their headquarters in Basel

(Reporting by Caroline Copley; Editing by Stephen Coates)

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