Tamiflu sales surge helps lift operating profit at Roche
Roche has seen a huge rise in sales of influenza drug Tamiflu, which helped the Swiss drugmaker to increase its operating profit by 13% to CHF7.97bn (
Roche has seen a huge rise in sales of influenza drug Tamiflu, which helped the Swiss drugmaker to increase its operating profit by 13% to CHF7.97bn (£4.5bn; Euro 5.2bn) for the six months to 30 June.
However, costs relating to the takeover of California-based Genentech meant that first-half net profit fell by 29% to CHF4.1bn. Total integration costs are expected to reach CHF3bn, mainly owing to the partial closure of the manufacturing plant in Vacaville (California) and ceasing production at Nutley (New Jersey). Administrative functions are also being streamlined following the transfer of research operations from Palo Alto to Nutley and the consolidation of the US Pharmaceuticals headquarters in San Francisco.
Global sales of Tamiflu (oseltamivir) rose 203% to CHF1bn, as governments, corporations and retail pharmacies stockpiled the drug in response to the H1N1 swine flu pandemic. Particularly strong sales of CHF609m were recorded during the second quarter to 30 June, compared with CHF49m in the second quarter of 2008.
By the start of 2010, Roche and its partners will be able to supply up to 400 million packs of Tamiflu annually. In addition, Roche has granted sub-licences to three manufacturers to produce generic oseltamivir for pandemic use in China, India and specified developing countries.
Pharmaceutical sales for the half-year rose by 11% to CHF19bn; without Tamiflu the increase would have been 7%. Operating profit in this division increased by 13% to CHF7.5bn.
Demand for the oncology drugs Avastin, Herceptin, MabThera/Rituxan, Xeloda and Tarceva continued to increase strongly, with dynamic growth seen in a number of emerging markets. In addition, Pegasys in virology and Lucentis in ophthalmology contributed significantly to growth.
According to Severin Schwan, chief executive of Roche, the company is continuing the positive trend in recent years of double-digit increases in sales and operating profit.
The integration of Genentech is also progressing well. "Work at Genentech's research and early development centre in South San Francisco has continued seamlessly with the existing management team," said Schwan.
"The combined company has one of the strongest development portfolios in the industry, with ten new molecular entities in ongoing or planned late-stage clinical development."