Roche's 2009 Operating Profit Up 14%

Published: 03-Feb-2010

Roche group has posted a strong performance for the FY 2009, as compared to previous year, though the company missed out on the forecasts.

Roche reported an operating profit of CHF15.012bn for the FY 2009, compared to CHF13.896bn for the FY 2008, an increase of 14%. The net income of the company was CHF8.510bn, a decline of 22% compared to CHF10.844bn in 2008.

The company reported a group sales increase of 10% to CHF49.1bn, due to strong sales growth and continuing productivity improvements. At the same time, investments in research and development increased by 12% to CHF9.9bn

In pharmaceutical category, the sales grew by 11%, almost twice the global market growth rate despite planned reductions in wholesaler inventory levels in the fourth quarter. The growth is driven by leading cancer medications and Tamiflu as well as Lucentis. The diagnostics category sales increased by 9% to CHF10.1bn , more than twice the market growth rate.

Severin Schwan, CEO of Roche, said: “In a turbulent external environment Roche performed extraordinarily well. Sales by both Pharma and Diagnostics grew twice as fast as their respective markets. Core Earnings per share grew even more strongly than sales. And we have layed the foundation for future growth: Our Pharma pipeline now comprises 10 new molecular entities in late-stage development - which is remarkable by any standards in our industry.

"Bringing Genentech fully into the Roche Group is a major step on the road to creating a stronger, even more innovative organisation."

For the FY 2010, Roche expects sales in pharmaceuticals division and the group to increase in the mid-single-digit range in local currencies (excluding Tamiflu). In the diagnostics division, it expects full-year sales to grow ahead of the market. Roche expects its research and development expenditures to decline slightly in 2010.

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