Media Release

Dubai, UAE, 24 January 2018- Roche (SIX: RO, ROG; OTCQX: RHHBY) reported its financial results for 2017 marked by a group sales increase of 5% to CHF 53.3 billion with a core operating profit growth of 3% and Core EPS increase of 5%, reflecting a good underlying business performance.

The company’s growth is accompanied by a 5% increase in sales of the Diagnostics Division to CHF 12.1 billion. Centralised and Point of Care Solutions (+7%) was the main contributor to this growth, led by the growth of its immunodiagnostics business (+13%). Sales increased 2% in EMEA[2] with growth numbers mainly driven by Asia–Pacific (+15%). Sales in the Pharmaceuticals Division increased 5% to CHF 41.2 billion with recently launched medicines Ocrevus, Tecentriq and Alecensa contributing to 65% of the division’s growth.

Commenting on the Group’s results, Roche CEO Severin Schwan said: “In 2017, we made significant progress with good growth in both divisions driven by newly launched medicines and tests. I am particularly pleased with the successful launch of Ocrevus and Hemlibra and important approvals for additional indications for Perjeta, Tecentriq and Alecensa. These medicines bring substantial benefit to patients with serious diseases such as multiple sclerosis, cancer and haemophilia. Based on our strong product portfolio we are well positioned for the future.”

Roche Diagnostics: key partnerships and new instruments

In December 2017, Roche entered into a strategic, long-term partnership with GE Healthcare to jointly develop and co-market digital clinical decision support solutions. The partnership will initially focus on products that accelerate and improve personalised treatment decisions for patients with cancer and those in critical care. With GE Healthcare, Roche aims to develop an industry-first digital platform that allows for the seamless integration and analysis of patient records, real-world data, medical best practice and the latest research outcomes. The November acquisition of Viewics, Inc., US, allows Roche to expand its leading position in the Integrated Core Laboratory with business analytics capabilities, enabling laboratories to make faster data-driven informed decisions on their operations and processes.

In the fourth quarter, new instruments were launched that allow for further increasing connectivity and automation in laboratories. These include the cobas t 711 and cobas t 511, fully automated systems for qualitative and quantitative in vitro coagulation determinations, using a wide variety of coagulation tests. The results of these tests aid in the diagnosis of coagulation abnormalities and in monitoring anticoagulant therapy.

Important approvals in Pharmaceuticals

In 2017, the US FDA approved two new medicines, namely Ocrevus for the treatment of relapsing and primary progressive forms of multiple sclerosis and Hemlibra for people with haemophlia A with factor VIII inhibitors. In the EU, approval was granted for Alecensa as a monotherapy for the treatment of patients with anaplastic lymphoma kinase (ALK)-positive, advanced Non-Small Cell Lung Cancer (NSCLC). In January 2018, EMA approved Ocrevus for the treatment of both the relapsing and the primary progressive forms of multiple sclerosis and Hemlibra was granted a positive opinion by the Committee for Medicinal Products for Human Use (CHMP).

Outlook for 2018

Sales are expected to grow in the stable to low-single digit range (at constant exchange rates). Core earnings per share are targeted to grow high-single digit (at constant exchange rates). Excluding the US tax reform impact core earnings per share are targeted to grow broadly in line with sales. Roche expects to further increase its dividend in Swiss francs.

Dividend proposal

The Board of Directors proposes a dividend increase to CHF 8.30 per share and non-voting equity security. Subject to approval by the Annual General Meeting of shareholders on 13 March 2018, this will be Roche’s 31st consecutive annual dividend increase.

 

[1] Unless otherwise stated, all growth rates in this document are at constant exchange rates (CER: average 2016).

[2] EMEA = Europe, Middle East and Africa