Roche's 9M Sales Climb - Analyst Blog
October 17 2012 - 11:16AM
Zacks
Roche Holdings Ltd. (RHHBY) recently reported
sales results for the first nine months of 2012. The company’s
revenues for the first nine months of 2012 climbed 4% from the
year-ago period, driven by growth in both its segments –
Pharmaceuticals Division and Diagnostics Division.
All growth rates mentioned below are on a year-on-year basis and at
constant exchange rates.
Sales for the Pharmaceuticals Division climbed 4%, driven by strong
sales of MabThera/Rituxan (up 10%), Avastin (up 6%) and Herceptin
(up 12%). Pegasys (up 18%), Xeloda (up 10%) along with recently
launched Zelboraf, Erivedge and Perjeta also added to the
division’s revenues.
Revenues from the Diagnostics Division went up 4%, attributable
primarily to a 15% increase in the Tissue Diagnostics segment, a 9%
rise in the Professional Diagnostics segment and a 4% jump in the
Molecular Diagnostics segment.
2012 Outlook Reiterated
The company reiterated its forecast for 2012. Roche continues to
expect total revenue and revenue from the Pharmaceuticals Division
to grow in the low-to-mid single digits in 2012. Sales from the
Diagnostics segment are expected to surpass market growth.
Moreover, Roche anticipates earnings to experience high
single-digit growth in 2012 despite the unfavorable market
environment.
Pipeline Update
Roche received positive results on 11 of its 14 late-stage
candidates in the first nine months of 2012. In August 2012, Roche
filed for approval of its HER2-positive metastatic breast cancer
treatment, trastuzumab emtansine (T–DM1), in the US as well as
Europe. The approval of T–DM1 will strengthen Roche’s HER2
franchise. Roche has partnered with ImmunoGen,
Inc. (IMGN) for the candidate.
The company also noted that due to slower-than-expected enrollment
in the phase III trial of ocrelizumab for multiple sclerosis, the
filing is expected in 2015. The company plans to file for approval
of lebrikizumab in after 2016.
In the fourth quarter of 2012, Roche plans to initiate a phase III
trial evaluating the combination of the MEK inhibitor (RG 7421) and
Zelboraf BRAF mutation-positive metastatic melanoma. Further the
company intends to initiate two phase III trials with aleglitazar
for reducing cardiovascular morbidity and mortality in high-risk
patients with type II diabetes during this period.
Our Recommendation
Roche currently carries a Zacks #1 Rank (short-term Strong Buy
rating).
IMMUNOGEN INC (IMGN): Free Stock Analysis Report
(RHHBY): ETF Research Reports
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