But there is a boom in Covid-19 tests. Fewer visits to the doctor due to pandemic. Years missed the forecasts.
Last year, the Swiss pharmaceutical company Roche benefited from the flourishing business with Covid-19 tests in its diagnostics division. However, because fewer people went to the doctor because of the pandemic, business in the pharmaceutical division slowed down.
The strong Swiss franc also had a negative impact. Group-wide, sales fell by 5 percent to 58.3 billion Swiss francs (around 54 billion euros), the company announced on Thursday in Basel. Adjusted for currency effects, there was one percent increase.
The core earnings per share adjusted for special effects slipped by 5 percent to 19.16 francs. Due to lower value adjustments, however, the bottom line rose by 7 percent to around CHF 15.07 billion. The dividend should now rise to 9.10 francs.
Also in the new year 2021, the competition from biopharmaceutically manufactured copycat products will continue, warned the management around CEO Severin Schwan. Roche nevertheless expects growth in the low to mid-single-digit percentage range, similar to the previous year, adjusted for currency effects.
The aim is for core earnings per share to grow largely in line with sales growth. Roche also endeavors to further increase the dividend.
Roche shares are likely to have a tough time on Thursday, at least in early trading. Because although analysts had expected a difficult final quarter, the pharmaceutical and diagnostics group is not meeting expectations with its annual result, especially when it comes to sales. Even with the targets for the new financial year, the Basler can't really score points with the experts.
Roche's diagnostics division was able to boost its sales by 14 percent on a currency-neutral basis. Similar to many other companies, the area gained significant momentum, especially in the final quarter.
According to its own information, Roche now has 15 products for Sars-Cov-2 diagnostics on offer. The flourishing business with this could more than make up for the decline in routine diagnostics, as it was said.
Pharmaceutical division: sales minus eight percent
In the pharmaceutical division, on the other hand, Roche had to accept an eight percent decline in sales due to the corona restrictions and the burdens of the strong franc; at constant exchange rates, the minus was two percent.
The Swiss recorded the greatest losses in the USA and Japan, while sales on the European market increased moderately after currency adjustments.
Sales of younger Roche drugs increased significantly again: drugs such as the cancer drug Tecentriq, the hemophilia drug Hemlibra and the multiple sclerosis drug Ocrevus achieved double-digit percentage growth in total. However, the ongoing erosion in sales of older drugs whose patents have expired is also having a negative effect.
According to Roche, sales of veteran blockbusters such as MabThera / Rituxan, Avastin and Herceptin fell by 5.8 billion francs worldwide in the 2020 financial year – even more than the company had last estimated.
