Roche reports solid results in 2020

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Roche reported a 1% increase in group sales at constant exchange rates for 2020, despite a 5% decline in Swiss francs due to currency appreciation. The Pharmaceuticals Division experienced a 2% decline in sales, hindered by competition from biosimilars and missed COVID-19 medical appointments. Conversely, the Diagnostics Division surged by 14%, driven by COVID-19 diagnostics. Roche's IFRS net income rose by 17% to CHF 15.1 billion.

An increase in dividends to CHF 9.10 is proposed, pending shareholder approval.

Positive

Diagnostics Division sales up 14% due to COVID-19 diagnostics.
Core earnings per share increased by 4%, outpacing sales growth.
Net income of CHF 15.1 billion, a 17% rise attributed to lower goodwill write-offs.
Record 19 new compounds in phase III trials, with R&D investment up 8% to CHF 12.2 billion.
Proposed dividend increase to CHF 9.10, indicating strong shareholder returns.

Negative

2% decline in Pharmaceuticals Division sales, impacted by biosimilars and missed medical appointments.
5% decline in group sales in Swiss francs due to currency appreciation.
Continued expectation of biosimilars affecting future sales growth.

02/04/2021 - 01:00 AM

Basel, 4 February 2021

Group sales increase 1%¹ at constant exchange rates (CER); 5% decline in Swiss francs, as a result of continued appreciation of the Swiss franc against most currencies
Pharmaceuticals Division sales decline 2%; continued strong sales growth of newly launched medicines (+32%², including Tecentriq, Hemlibra, Ocrevus, Perjeta and Kadcyla) largely offsets the impact of competition from biosimilars (CHF -5.1 billion at CER³), but not the additional COVID-19-related impact from missed medical appointments
Diagnostics Division sales grow 14% for the full year (+28% in the fourth quarter) due to COVID-19 diagnostics; more than offsetting a decline in routine testing due to COVID-19
Roche’s contributions to the fight against the COVID-19 pandemic:
- Launch of 15 new diagnostic solutions for COVID-19
- Key tests launched in the fourth quarter:
  - USA: Elecsys Anti-SARS-CoV-2 S antibody test, which can play a critical role in measuring a person’s vaccine-induced immune response
  - Europe: Elecsys SARS-CoV-2 Antigen test to support high-volume testing of suspected COVID-19 patients
- Production capacity for SARS-CoV-2 tests and COVID-19-related medicines ramped up significantly at unprecedented speed; substantial funds committed to further expand supply chain capacities (>CHF 800 million)
- Major partnerships: With Regeneron to increase global supply of investigational antiviral antibody combination (August), with Atea to develop a potential oral COVID-19 treatment (October), and with Moderna to include our recently launched antibody test in their ongoing vaccine trials (December)
Approvals for medicines in the fourth quarter:

o USA: Gavreto (thyroid cancer); Xofluza (influenza); Xolair (nasal polyps)
o Europe: Tecentriq plus Avastin (liver cancer), Phesgo (breast cancer), Xofluza (influenza)⁴

Strong pipeline: record number of 19 new compounds in phase III trials or filed for approval; investment in research and development further increased by 8% to CHF 12.2 billion
Core earnings per share (EPS) grow ahead of sales at 4% (-5% in CHF)
IFRS net income of CHF 15.1 billion, increasing 17% (7% in CHF), mainly due to the lower goodwill write-offs compared to the previous year
Board proposes dividend to increase to CHF 9.10. Subject to shareholder approval, this would be the 34th consecutive dividend increase)

Outlook for 2021: Despite the continued strong impact of biosimilars, sales are expected to grow in the low- to mid-single digit range, at constant exchange rates. Core earnings per share are targeted to grow broadly in line with sales, at constant exchange rates. Roche expects to increase its dividend in Swiss francs further.

Key figures 2020

CHF millions

% change

2020

2019

At CER

In CHF

Group sales

58,323

61,466

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