Roche profits hit by Genentech deal
Swiss drugs firm Roche reported an 8% increase in annual sales for 2009 to CHF49bn (US$46.5bn;
Swiss drugs firm Roche reported an 8% increase in annual sales for 2009 to CHF49bn (US$46.5bn; £29bn; Euro 33bn), driven by the swine flu drug Tamiflu and cancer treatments such as Herceptin and Avastin.
However, Roche's net profit was hit by costs associated with the acquisition of its US-based subsidiary Genentech and fell 22% to CHF8.5m.
The company said it expected to have repaid a quarter of the CHF48bn debt taken on to finance the deal by the end of this year.
Sales of pharmaceuticals rose by 8% to almost CHF39bn, nearly double the global pharmaceuticals market growth rate.
The worldwide spread of swine flu led to strong demand for Tamiflu, which saw global sales jump 435% to CHF3.2bn owing to "unprecedented demand from governments and in the retail pharmacy sector", but this is expected to drop to CHF2bn this year as governments have now filled their inventories with the drug.
Roche expects r&d costs to decline slightly in 2010. However, it remains firmly focused on innovation and a strong r&d pipeline includes 10 new molecules in late-stage clinical testing. Six new compounds entered late-stage development in 2009.
Over the next 12-18 months the pharmaceuticals division expects to file marketing applications for several line extensions to key cancer treatments Avastin, MabThera/Rituxan and Xeloda, as well as for taspoglutide for Type 2 diabetes.
Severin Schwan, ceo of Roche, said Roche had performed "extraordinarily well" in a turbulent environment.
Roche expects group sales to increase by around 5% in 2010, excluding the Tamiflu business.