Roche Holding AG (ROG.VX) Wednesday said it received European Union approval to sell its rheumatoid arthritis drug RoActemra, underlining the Swiss drugmaker's strong position in a sector suffering from lack of innovation and the loss on patents of big money-earners.

Roche, based in Basel, said the biological drug, which takes a new approach to treat the disease, will be sold in combination with an older pill to patients who failed to respond to existing therapies.

RoActemra, known as Actemra in the U.S., is Roche's most important new drug launch this year.

In December, the company was dealt a big setback on Actemra, when the U.S. Food and Drug Administration asked for a new animal trial and other information, which will delay its launch by at least 18 months.

Many analysts see Actemra reaching peak annual sales of around $2 billion. A few see even higher results.

Actemra, a humanized monoclonal antibody, was developed by Japan's Chugai Pharmaceutical Co. (4519.TO), which is controlled by Roche, and Roche owns the rights to sell Actemra outside Japan.

Roche shares closed at CHF170.30. The stock has dropped 16% over the past year, slightly more than the 14% fall in the European drugs sector.

Roche, the world's seventh-largest pharmaceutical company by sales, focuses on prescription drugs. Its most successful franchise is cancer drugs, which made up nearly half of its total sales last year. Novartis AG (NVS) holds 33% of Roche shares.

Company Web Site: http://www.roche.com

-By Anita Greil, Dow Jones Newswires; +41 43 443 8044 ; anita.greil@dowjones.com

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