The Roche Group posted solid overall results in 2010

RocheGroup sales were stable in local currencies at 47.5 billion Swiss francs (-3% in Swiss francs; 1% in US dollars). The good underlying growth of both divisions compensated for the expected decline in Tamiflu sales and the impacts of healthcare reforms and austerity measures. Excluding Tamiflu, sales increased by 5% in local currencies. The Pharmaceuticals Division represented 78% of Group sales and the Diagnostics Division contributed 22%.

Sales in the Pharmaceuticals Division declined by 2% in local currencies to 37.1 billion Swiss francs. Excluding Tamiflu, local growth was 5%, above market growth. Demand for the oncology drugs Avastin, MabThera/Rituxan, Herceptin, Xeloda and Tarceva continued to grow strongly. Additional major growth drivers were Actemra/RoActemra in rheumatoid arthritis, Mircera in anemia and Lucentis in ophthalmology. Actemra, which is now launched in some 50 countries including the United States, the EU and Japan, reached sales of 397 million Swiss francs in 2010. These positive factors compensated for most of the expected strong decline in Tamiflu sales, the reduction in CellCept sales due to US patent expiry in May 2009 and the impacts of the US healthcare reforms, European austerity measures and price cuts in Japan.

The Diagnostics Division increased sales to 10.4 billion Swiss francs in 2010, growing 8% in local currencies (4% in Swiss francs; 8% in US dollars), thereby strengthening its leading market position. Major drivers were Professional Diagnostics with 11% sales growth and Diabetes Care with 4% sales growth.

The Group's core operating profit increased by 7% in local currencies (2% in Swiss francs). The Pharmaceuticals Division increased its core operating profit by 4% in local currencies, driven primarily by cost synergies from the Genentech integration and productivity improvements. Core operating profit growth in the Diagnostics Division was 30% in local currencies, mainly resulting from sales growth due to new product launches and the ongoing operational efficiency programmes. The Group's core operating profit margin increased by 1.7 percentage points to 34.9%, with the Pharmaceuticals Division improving by 1.9 percentage points to 39.9% and the Diagnostics Division by 3.8 percentage points to 21.1%.

In 2010 the Group's net income increased by 4% to 8.9 billion Swiss francs compared to 2009. Net income attributable to Roche shareholders rose 11% to 8.7 billion Swiss francs.

The Group's operating free cash flow remained strong at 14.1 billion Swiss francs. A free cash flow of 4.7 billion Swiss francs was achieved in 2010 despite higher interest, tax and dividend payments.

Of the debt raised in early 2009 to finance the Genentech transaction, 33% had already been repaid by 31 December 2010. In addition, the Group exercised its option to call for redemption a portion of the US dollar notes due 1 March 2014. Of the total principal amount of 2.75 billion US dollars, 1.0 billion US dollars will be redeemed in March 2011. The net debt position of the Group is 19.2 billion Swiss francs, a decrease of 4.7 billion Swiss francs from 31 December 2009.

About Roche
Headquartered in Basel, Switzerland, Roche is a leader in research-focused healthcare with combined strengths in pharmaceuticals and diagnostics. Roche is the world's largest biotech company with truly differentiated medicines in oncology, virology, inflammation, metabolism and CNS. Roche is also the world leader in in-vitro diagnostics, tissue-based cancer diagnostics and a pioneer in diabetes management. Roche's personalised healthcare strategy aims at providing medicines and diagnostic tools that enable tangible improvements in the health, quality of life and survival of patients. In 2010, Roche had over 80,000 employees worldwide and invested over 9 billion Swiss francs in R&D. The Group posted sales of 47.5 billion Swiss francs. Genentech, United States, is a wholly owned member of the Roche Group. Roche has a majority stake in Chugai Pharmaceutical, Japan.

Most Popular Now

New target for COVID-19 vaccines identified

Next generation vaccines for COVID-19 should aim to induce an immune response against 'replication proteins', essential for the very earliest stages of the viral cycle, c...

Safety concerns raised for neuroblastoma candidate…

St. Jude Children's Research Hospital scientists looking for drugs to improve survival of children with high-risk neuroblastoma found a promising candidate in CX-5461. Th...

Johnson & Johnson COVID-19 vaccine named one o…

The editors of Time announced that the Johnson & Johnson COVID-19 vaccine has been selected as one of Time's Best Inventions of 2021. The vaccine, for which Johnson & ...

Pfizer's novel COVID-19 oral antiviral treatment c…

Pfizer Inc. (NYSE: PFE) today announced its investigational novel COVID-19 oral antiviral candidate,PAXLOVID™, significantly reduced hospitalization and death, based on a...

Researchers reveal a strategy for next-generation …

A study led by the Garvan Institute of Medical Research has revealed a guide to developing COVID-19 vaccines that both prevent the coronavirus from infecting human cells ...

A commonly found parasite could treat certain type…

Scientists have discovered that a deadly parasite, known to cause ill health in pregnant women and immunocompromised patients, could potentially be used to treat various ...

'Dancing molecules' successfully repair severe spi…

Northwestern University researchers have developed a new injectable therapy that harnesses “dancing molecules” to reverse paralysis and repair tissue after severe spinal ...

A target for potential cancer drugs may, in fact, …

In recent years, much scientific effort and funding has focused on developing drugs that target an enzyme with the unwieldy name of Src homology 2-containing protein tyro...

Abbott launches new initiative to drive diversity …

Abbott (NYSE: ABT) today announced the launch of a new initiative designed to help create a more inclusive clinical trial ecosystem through new approaches to training, ed...

Needle-free COVID-19 vaccine shows promise

A needle-free COVID-19 vaccination could be possible, with University of Queensland scientists successfully protecting mice from the virus by administering a US-developed...

Cleveland Clinic launches first-of-its kind preven…

Cleveland Clinic researchers have opened a novel study for a vaccine aimed at eventually preventing triple-negative breast cancer, the most aggressive and lethal form of ...

Novartis to sell its Roche stake in a bilateral tr…

Novartis has agreed to sell 53.3 million (approximately 33%) Roche bearer shares in a bilateral transaction to Roche for a total consideration of USD 20.7 billion. Vas...