Roche first-half sales and profits beat consensus forecasts

Swiss drug major Roche (ROG: SIX) yesterday presented a solid set of first-half 2012 results, with +4% growth (at constant currency (+3% local currencies) in group sales to 22.4 billion Swiss francs ($22.7 billion), exceeding consensus estimates of 21.9 billion francs. Core operating profit grew 7% to 8.6 billion francs, versus analysts’ expectation of 8.45 billion francs. Core earnings per share grew 8% to 6.94 francs (at CC), just shy of consensus forecast of 6.95 francs.

Net income of 4.37 billion francs was down 14% mainly due to one-off costs of 858 million francs relating to closure of its Nutley, USA, facility and productivity measures in Applied Science and Diabetes Care. For full year 2012, the company expects group and pharmaceuticals sales to grow low to mid-single-digit rates; diagnostics to grow above the market; and core EPS targeted at high single-digit.

Commenting on the results, chief executive Severin Schwan said: “Roche delivered strong operating results in the first half of 2012, driven by the solid performance of our existing portfolio as well as new product launches. We recently introduced the innovative cancer medicines Zelboraf (vemurafenib), Erivedge (vismodegib) and Perjeta (pertuzumab), and we are on track to file for T–DM1 in breast cancer this year. Over the last six months we made good progress in developing our product pipeline, and we now have 72 new molecular entities in clinical development.” Schwan added: “Our recent decision to close the Nutley site and the related consolidation of our research and early development activities at other sites will free up resources that we can invest in our promising clinical programs.”