Roche saw Group sales fall 10% in Swiss francs (CHF) to 42.5 billion in 2011 due to the appreciation of the franc, and revenue decrease by 12% in its Pharmaceuticals Division after sales of Avastin and Tamiflu fell.
Pharmaceutical sales accounted for 32.7bn CHF after MabThera generated 6bn CHF (+8%), Herceptin 5.2bn CHF (+9%) and sales of Lucentis increased by 23% to 1.5bn CHF.
Severin Schwan, Roche CEO, says the Group achieved its “sales and earnings targets” in 2011 and made “significant progress with our pipeline”.
The company expects to record single-digit sales growth for the Group and its pharma division in 2012 after achieving several important regulatory milestones in Q4 of 2011.
Group sales in constant currencies were up 1% after its pharma division, excluding Tamiflu, grew at the same rate. Sales were up 2% in constant currencies in the US to 12.2bn Swiss francs and in international markets by 3% to 8.5bn. However, pharmaceutical sales in Western Europe dropped 3% to 8.2bn and in Japan by 6% to 3.8bn.
Core operating profit increased 6% in constant currencies, core earnings per share was up by 11% and net income jumped 26% to 9.5bn CHF in 2011.
Sales of cancer medicines Xeloda (1.3bn CHF; +8%), Tarceva (1.2bn CHF; +7%) and Zelboraf (31m) – recently launched in the US – were called “encouraging”. But a 7% decrease in sales of Avastin, NeoRecormon (-23%), Bonviva (-22%) and CellCept to (-14%) were put down to US health reforms, European austerity measures and Japanese biennial price cuts resulting in a negative growth impact of 295m CHF.
“With 17 positive late-stage clinical trials in 2011, we continue to build our future business with innovative products,” said Severin Schwan. “For 2012 we expect Group sales to grow at a low to mid-single-digit rate and we have set ourselves the target of high single-digit Core Earnings per Share growth.”