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Sales Performance Analysis of Roche’s Pharmaceuticals Division

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Nov. 20 2020, Updated 2:08 p.m. ET

Analyzing the pharmaceuticals division

Roche Holding (RHHBY) generated ~78% of its group sales from the pharmaceuticals division. The division’s sales amounted to 19.5 billion Swiss francs during the first half of fiscal 2016. The major revenue contributors were MabThera/Rituxan, Herceptin, and Avastin. They earned 42% of the total revenue in the first half of 2016. We’ll discuss these drugs in the next part of this series.

Along with the established drugs, Roche launched four drugs in 1H16: Cotellic, Alecensa, Venclexta, and Tecentriq. RHHBY also plans to launch Ocrevus in the second half of 2016. Thus, five launches in a single year make Roche a leader in innovation. The company holds a maximum number of breakthrough therapy designations, which is more than any other company. For details on the breakthrough therapy designation, please refer to What Were Roche’s Breakthrough Therapy Designations in 2016?

Continuous investment in cancer immunotherapies places Roche at a better place in the competitive market where major players include Bristol-Myers Squibb (BMY), Novartis (NVS), and Merck (MRK).

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Performance across geographies

  • US: Roche experienced good growth across all its geographies. The pharmaceuticals division witnessed a 4% jump in US sales. The growth in the country was driven by Xolair, Esbriet, Herceptin, and Perjeta.
  • Europe: On a constant currency basis, sales grew by 5%. Perjeta, MabThera/Rituxan, and Actemra/RoActemra were the sales drivers in Europe.
  • Japan: The division experienced 2% sales growth, which came from HER2 (human epidermal growth factor receptor 2-positive) medicines, Alecensa, and Actemra/RoActemra in Japan.
  • International: Avastin and MabThera/Rituxan fueled growth for international operations.

If you want diversified exposure to equities, you can invest in ETFs. The Vanguard FTSE All-World Ex-US Index Fund (VEU) invests 0.71% of its holdings in Roche.

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