Roche 2020 Net Profit Rises But Biosimilars Continue to Pose Headwinds -- Earnings Review
By Cecilia Butini
Roche Holding AG reported 2020 earnings on Thursday. Here's what
SALES: The Swiss pharmaceutical company posted sales of 58.32
billion Swiss francs ($64.88 billion) for 2020, just shy of
analysts' forecast of CHF59.42 billion, and down from CHF61.47
billion in 2019.
NET PROFIT: Net profit for the year came in at CHF14.30 billion,
versus a consensus estimate that had it at CHF14.59 billion. This
was slightly up from CHF14.11 in 2019.
WHAT WE WATCHED:
GUIDANCE: The company guided for sales growth in the low-to-mid
single-digit range at constant exchange rates, which was described
as conservative by some analysts as the current market consensus is
above company guidance.
BIOSIMILAR EROSION OF SALES: The impact of biosimilar
competition on sales was quantified by the company at negative
CHF5.1 billion at constant exchange rates. The erosion hit the
pharmaceutical division particularly hard as was expected, driving
a 2% decline in sales in the year. Looking ahead, the company said
it expects biosimilars to continue to weigh.
TAILWINDS IN DIAGNOSTICS: Covid-19 tests propelled growth in the
diagnostics division, as anticipated by analysts. Sales rose 14% in
the division, with molecular diagnostics posting 90% growth on the
back of strong demand for tests.
Write to Cecilia Butini at email@example.com
(END) Dow Jones Newswires
February 04, 2021 09:53 ET (14:53 GMT)
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