Roche 1st Half Net Profit Fell Despite Higher Sales; Backs 2021 Outlook -- Update
July 22 2021 - 2:50AM
Dow Jones News
By Cecilia Butini
Roche Holding AG said Thursday that profit for the first half of
the year decreased though sales grew, driven by the diagnostics
division.
The Swiss pharmaceutical major posted net profit for the period
of 7.80 billion Swiss francs ($8.50 billion), compared with CHF8.08
billion a year earlier, on sales that rose to CHF30.71 billion from
CHF29.28 billion.
Operating profit was CHF10.08 billion, down from CHF10.64
billion the previous year.
Sales in the diagnostics division grew 51% due to high demand
for Covid-19 tests and strong momentum in routine testing, the
company said. It added that its portfolio of Covid-19 tests
contributed total sales of CHF2.5 billion, though the demand for
such tests is likely to decrease in the second half.
The pharmaceutical division, on the other hand, saw a decline in
sales of 3% in the first half, having taken a hit from the pandemic
in the first quarter followed by some growth in the second, Roche
said. The company added that the division experienced a CHF2.8
billion hit from biosimilars, particularly in the U.S., where
biosimilars were launched for cancer drugs MabThera/Rituxan,
Avastin and Herceptin.
In Europe, sales for new products more than compensated for the
impact from biosimilars and were driven by Ronapreve, an antibody
combination used to treat Covid-19, especially in Germany, Italy
and France, Roche said.
Roche confirmed its outlook for the full year, saying that it
expects sales growth in the low-to-mid-single-digits range at
constant exchange rates, and core earnings per share growth broadly
in line with sales. It added that it expects to further increase
its dividend in Swiss francs.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
July 22, 2021 02:37 ET (06:37 GMT)
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