Roche Holding AG (ROG.VX) Wednesday reported a 8% drop in full-year net profit and slightly lower sales, as the strong Swiss franc and a sharp drop in revenue from flu drug Tamiflu offset the boost from briskly selling cancer drugs.

Roche, based in Basel, said net profit attributable to shareholders fell to 8.97 billion Swiss francs ($7.83 billion) in the year ended Dec. 31 from CHF9.76 billion in 2007, below analysts' average forecast of CHF9.81 billion. Roche, which doesn't publish quarterly earnings figures, said sales declined 1% to CHF45.62 billion from CHF46.13 billion.

For the full year 2009, Roche expects sales at its flagship pharmaceutical division to rise at mid-single-digit pace, and group sales to expand at the same rate.

The company plans to increase its dividend to CHF5 a share, from CHF4.60 in 2007.

Sales at the flagship pharmaceutical unit suffered from the fall in Tamiflu revenue. The drug had seen healthy sales in earlier years when governments bought in bulk to stockpile to be prepared for the possible outbreak of an influenza pandemic. The franc's appreciation against the dollar and the euro further dented sales.

Roche shares closed Tuesday at CHF162.60, down 0.6% on the day. The stock's value is unchanged so far this year, while the European healthcare sector as a whole is 0.9% higher.

Company Web Site: www.roche.com

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

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