Roche has reported a net income of SFr6.6bn ($7.4bn) in the first half (H1) of 2024, marking a 4% decline at constant exchange rates (CER) compared to SFr7.5bn ($8.5bn) in the same period of 2023.
Despite the drop in net income, the company saw a rise in group sales, which were up by 5% at CER, reaching SFr29.8bn from SFr29.7bn in H1 2023.
The increase in group sales was propelled by robust demand for the company’s medicines and diagnostics.
Excluding Covid-19-linked products, sales saw an 8% uptick.
Core operating profit experienced an 11% growth at CER (4% in SFr), attributed to the higher sales volume coupled with effective cost management strategies.
Core earnings per share (EPS) on a diluted basis climbed by 9% at CER to SFr10.2 from SFr10.10 in the same period of the previous year.
This improvement was attributed primarily to the impairment of product and technology intangible assets in the research or development phase following strategic decisions.
The Pharmaceuticals division's base business expanded by 8% to SFr22.6bn from SFr22.5bn.
The growth was led by increased sales of Vabysmo for severe eye diseases, along with higher demand for Phesgo for breast cancer, Ocrevus for multiple sclerosis, Polivy for blood cancer and Evrysdi for spinal muscular atrophy.
These five medicines collectively generated sales of SFr7.3bn, a significant increase from the first half of 2023.
In the US and Europe, sales rose by 5% and 10%, respectively, while a 28% decline in sales in Japan was reported.
Meanwhile, sales in the international region grew by 17%, led by demand for Perjeta, Evrysdi, Phesgo and Tecentriq for cancer immunotherapy.
The diagnostics division's base business saw a 9% increase, with immunodiagnostic products, including tests for cardiac conditions, oncology and thyroid disorders, the key growth contributors.
Roche CEO Thomas Schinecker said: “Our strong sales growth in the first half of 2024 reflects the high demand for our innovative medicines and diagnostics.
“In the second quarter, we saw an acceleration of our growth momentum as group sales were no longer impacted by the decline in Covid-19 sales, resulting in very strong sales growth for the group. Based on our strong half-year results, we are raising our earnings outlook for the full year.”
Looking forward, Roche raised its outlook for 2024 earnings and now expects group sales to increase in the mid-single-digit range at CER.
