Roche Launches Kadcyla in Japan - Analyst Blog

Roche's (RHHBY) breast cancer franchise received a boost when it announced that it has launched its cancer drug Kadcyla in Japan.

We note that Kadcyla is approved for the indication of HER2-positive inoperable or recurrent breast cancer in Japan. It received marketing approval in Sep 2013.

Subsequent to the approval, Roche initiated a clinical study at a limited number of medical institutions from Jan 2014 in order to provide access to patients and collect clinical data. Roche will now terminate this study as enrollment has reached the target number and access will be normalized post launch.

We remind investors that Kadcyla was approved for treating previously treated HER2-positive metastatic breast cancer in the U.S. in Feb 2013 and EU in Nov 2013.

Roche is a leader in breast cancer market with its HER2 franchise which includes Herceptin and recently launched drugs like Perjeta and Kadcyla. Perjeta was launched in the U.S. in Jun 2012. Perjeta obtained approval in the European Union in Mar 2013. The approval of Perjeta in the EU, Kadcyla in the U.S, EU and Japan and approval of the subcutaneous formulation of Herceptin in the EU have further strengthened Roche's HER2 franchise. Sales of the franchise increased 17% in the first quarter of 2014.

Last week, Roche reported first quarter sales results which met the Zacks Consensus Estimate. The oncology portfolio looks solid as ever and we expect further traction in 2014. We are also impressed by the company's efforts to grow its portfolio beyond oncology to immunology and ophthalmology.

Roche currently carries a Zacks Rank #3 (Hold). Investors may consider other large cap pharmas like Allergan AGN, Johnson & Johnson JNJ and AbbVie ABBV. All three carry a Zacks Rank #2 (Buy).