Roche Expects Higher FY21 Sales As Delta Variant Boosts Demand For Diagnostics

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  • Roche Holding AG RHHBY raised its 2021 sales forecast after posting an 8% rise in nine-month revenues, driven by demand for COVID-19 tests and the strong performance in the broader business.
  • Group sales in the nine months to September rose to CHF46.68 billion from CHF43.98 billion, as diagnostics division sales jumped 39%.
  • "The demand for coronavirus tests remained high in the third quarter due to the Delta variant," Chief Executive Severin Schwan said, adding that there have also been signs of recovery in the pharmaceuticals unit since the summer.
  • Roche expects FY21 sales to grow in the mid-single-digit range at constant exchange rates. It previously expected a rise in the low to mid-single-digit percentage range.
  • Roche also witnessed signs of recovery in the pharmaceuticals unit since the summer, the company said, after the pandemic hurt sales.
  • Competition from biosimilars for MabThera/Rituxan, Avastin, and Herceptin led to an overall decline, partly offset by sales of Actemra/RoActemra, Hemlibra, Ocrevus, and Tecentriq, as well as for Evrysdi (spinal muscular atrophy) and Phesgo (breast cancer), launched in 2020.
  • Pivotal trials for the Alzheimer's drug gantenerumab are expected to be completed in 2H of 2022.
  • Related: Rebound In COVID-19 Tests Lift Roche's Half-Year Sales, Oncology Still Hit By Biosimilars, Pandemic.
  • Price Action: RHHBY shares traded 1.30% lower at $47.92 on the last check Wednesday.
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Posted In: BiotechEarningsNewsGuidanceHealth CareGeneralBriefs
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