Roche announces slower growth in 2018 and investors lose interest in it

Switzerland-based drugmaking giant Roche has announced today its 2017 financial results. The operating profit increased by 3% (CHF19bn), revenues by 5% to CHF53.3bn. In 2018 Roche will have to face the challenge of biosimilars and generics to some of its important blockbusters. The group’s management expects a moderate or even zero growth in 2018. Despite competition, Herceptin, MabThera/Rituxan and Avastin are still the best-selling drugs and together have generated CHF21bn in 2017, which almost corresponds to 40% of the group’s revenues. Positive results came from the new drugs Hemlibra (hemophilia), which delivered CHF3m, and Tecentriq (lung cancer), which delivered CHF487m (+50%). The modest growth rate expected in 2018, in addition to the increased pressure by biosimilars and generics on Roche’s products, have resulted in Roche’s shares to lose over 1.5% (Zurich).
(Source: Roche)