Tamiflu boosts Roche sales figures

Roche, the Swiss pharmaceuticals group best known for its Tamiflu influenza treatment and its powerful cancer drugs, raised guidance for full-year sales in 2009 after turnover in the first nine months came in significantly higher than expected.

The sales figures – Roche publishes no profits at the nine-month stage – were boosted by bumper demand for Tamiflu amid persistent fears about a global flu pandemic. Tamiflu sales of SFr2bn ($1.9bn) in the first nine months were more than four times ahead of the same period last year. In the third quarter, sales reached SFr994m – nearly 10 times more than in the same period last year.

The increase in orders prompted Roche to raise its full-year sales target for the anti-viral treatment from SFr2bn to SFr2.7bn and almost double its 2010 estimate from SFr400m to SFr700m.

The group, which successfully completed the $47bn acquisition of its majority owned Genentech operation in the US and is integrating the two companies, said sales in both drugs and diagnostics – its two core divisions – had risen strongly, and well above market rates.

As a result, Roche raised its forecast for sales growth in pharmaceuticals – its dominant division – to “at least high single-digit growth” for the year. The group sales estimate was also tweaked upwards, with Roche now predicting sales to rise “well ahead” of the market, compared with just “ahead” previously.

Analysts welcomed the figures and revised targets. The Tamiflu sales figures were more than 50 per cent above expectations, and easily outweighed slight disappointment about sales growth for some of the group’s top cancer drugs. Diagnostics also performed more strongly than expected.

In late morning trading, Roche shares were down just over 1.5 per cent at SFr166.90 on profit taking.

Group sales in the first nine months rose by 9 per cent to SFr36.4bn. Drug sales climbed by 11 per cent to SFr29bn, while diagnostics were 4 per cent higher at SFr7.4bn.

“The Roche group continued to perform very strongly in the third quarter ... Based on this performance, we expect another very good full-year result,” noted Severin Schwan, chief executive.

Roche said integration with Genentech was now achieving “substantial productivity gains” and should be largely completed by the end of the year. The group noted that, by 2011, it expected annual pre-tax synergies of about SFr1bn from the deal.

Strong operating cash flow meant that Roche expected to reduce the significant debt it assumed for the Genentech purchase, and return to a position of positive net cash by 2015.