Roche Posts Lower Quarterly Sales As Demand For COVID Products Slide

Roche Posts Lower Quarterly Sales As Demand For COVID Products Slide
  • Roche Holdings AG RHHBY Q3 FY22 sales reached CHF14.74 billion, down 6% Y/Y due to lower sales from COVID-19 treatments and diagnostics.
  • "The third quarter of 2022 was particularly challenging due to base effects, as the demand for COVID-19 medicines and tests was exceptionally high in the same quarter of 2021," the company said.
  • "Despite an increasing incidence rate for COVID-19, actually, we don't see an increase in the demand for COVID-19-related products," CEO Severin Schwan told journalists in a call, Reuters reported, adding this was valid for both tests as well as drugs Ronapreve and Actemra.
  • Recently, Roche announced the launch of its next-generation portfolio of COVID-19 rapid antigen tests for self-testing and professional use in countries accepting the CE Mark. 
  • Distribution of the new rapid test portfolio is projected to begin in the coming weeks.
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  • The newer medicines Ocrevus (multiple sclerosis), Hemlibra (hemophilia), Evrysdi (spinal muscular atrophy), and Phesgo (breast cancer) continued their strong growth. 
  • Ocrevus sales increased 16% to CHF 1.52 billion, while Hemlibra jumped 23% to CHF 952 million.
  • Guidance: The company reaffirmed its guidance for full-year revenue to be flat or grow by a "low-single-digit" percentage, excluding foreign exchange effects.
  • It also reiterated that the percentage gain in core earnings per share would be in the "low- to mid-single digit" range.
  • Price Action: RHHBY shares closed higher by 1.78% at $41.20 on Monday.

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