Roche Confirms 2024 Sales Growth Targets Despite Q1 Decline as Vabysmo Sales Surge

Roche Holding AG, the Swiss pharmaceutical giant, reported a 6% decline in first-quarter sales to 14.4 billion Swiss francs ($15.80 billion), in line with analyst expectations. The company attributed the decline to the loss of COVID-19-related revenue and the strong Swiss franc, which weighed on overseas revenue. "The impact of the drop in COVID-19-related sales is largely over, and there will be no further material impact on group sales," said Roche CEO Thomas Schinecker.

Despite the overall decline, Roche's new eye drug Vabysmo saw its sales double to 847 million Swiss francs during the quarter, surpassing analyst expectations. The strong performance of Vabysmo helped offset the revenue decline in other areas. Roche also reported strong demand for other newer medicines like Phesgo, Ocrevus, Polivy, and Hemlibra.

Roche confirmed its ambitions to return to sales growth in 2024, expecting an increase in the mid-single-digit percentage range at constant exchange rates. The company also expects core earnings per share to develop broadly in line with sales growth. "Roche had a strong start to the year, with both divisions reporting high single-digit growth in their base business, excluding COVID-19 sales," Schinecker stated.

Why this matters: Roche's ability to maintain its 2024 sales growth targets despite the Q1 decline highlights the strength of its newer drug portfolio and its resilience in navigating the post-pandemic landscape. The company's success in offsetting COVID-19-related losses with the growth of drugs like Vabysmo demonstrates its adaptability and potential for future growth.

Looking ahead, Roche expects to receive several key approvals and regulatory milestones in 2024, including the US approval for Xolair in food allergies and FDA approval for Alecensa in early-stage lung cancer. The company also filed for US accelerated approval for inavolisib in first-line PIK3CA mutated HR-positive breast cancer. With four remaining pivotal readouts and 12 Phase 3 enabling readouts planned for 2024, Roche is well-positioned to address large opportunities in areas like Alzheimer's and Parkinson's disease.

Key Takeaways

• Roche Q1 sales declined 6% to 14.4B CHF due to loss of COVID-19 revenue.
• Vabysmo sales doubled to 847M CHF, offsetting declines in other areas.
• Roche expects to return to mid-single-digit sales growth in 2024.
• Newer drugs like Ocrevus, Polivy, and Hemlibra saw strong demand.
• Roche plans key approvals and readouts in 2024 for growth opportunities.