Net Profits Rise 18% At Roche In 1995

Despite the marked appreciation of the Swiss franc, net profits advanced 18% to 3.4 billion Swiss francs ($2.7 billion) in 1995, Swiss pharmaceutical company Roche announced, in keeping with expectations. The acquisition of US firm Syntex further strengthened Roche's market position and expanded the group's product range in major therapeutic areas, it was noted.

Sales for the year amounted to 14.4 billion francs, a rise of 16% in local currencies or 5% when expressed as Swiss francs. Pharmaceutical turnover was ahead 23% in local currencies to 9.2 billion francs, an 11% increase in Swiss franc terms. Sales of vitamins and fine chemicals advanced 5% in local currencies and declined 5% in Swiss francs to just over 3 billion francs, while fragrances and flavors advanced 4% in local currencies and declined 6% in Swiss francs to 1.4 billion francs. The diagnostics division achieved turnover for the year of 640 million francs, which was a 6% increase expressed in Swiss francs or a 15% increase in local currencies. Roche Biomedical Laboratories was demerged in May to form part of a joint venture, Laboratory Corporation of America.

The group R&D spend for the year was 2.3 billion francs, with just under 2 billion francs of this going to the pharmaceutical division, representing 21% of divisional sales. Goldman Sachs analysts noted that pharmaceutical R&D spending represented 23.8% of divisional sales in 1994, and say they expect to see the percentage decline to around 18% by 1998/99.