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Vabysmo, Hemlibra Drive Roches Sales in Q3 & First 9 Months of 2024
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Swiss pharma giant Roche Holding AG (RHHBY - Free Report) posted strong growth in the third quarter. Sales increased 6% year over year to CHF 15.1 billion and were up 9% at constant exchange rates (CER).
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The company reports under two divisions — Pharmaceuticals and Diagnostics. All growth rates mentioned below are on a year-over-year basis and at CER.
Total sales increased 6% in the first nine months of 2024 to CHF 45 billion. Excluding COVID-19-related products, sales increased 8%.
Sales in the Pharmaceuticals Division grew 7% in the first nine months to CHF 34.3 billion, driven by strong growth in demand for its key drugs.
The Diagnostics division’s sales rose 5% year over year to CHF 10.7 billion. The base business in this division grew 8%, driven by demand for immunodiagnostic, pathology and molecular solutions products.
Roche’s shares have risen 8.2% year to date compared with the industry’s growth of 19.1%.
Image Source: Zacks Investment Research
RHHBY's Key Drugs Fuel Growth
Vabysmo (eye diseases) was the biggest growth driver of sales, with Phesgo (breast cancer), Ocrevus (multiple sclerosis), Hemlibra (hemophilia) and Polivy (blood cancer) being the other significant contributors. These five drugs (in unison) generated sales of CHF 13.2 billion, reflecting an increase of CHF 2.7 billion from that recorded in the corresponding period of 2023.
Sales of Ocrevus, used to treat two types of multiple sclerosis, increased 9% year over year to CHF 5 billion.
Sales of hemophilia A drug Hemlibra surged 10% year over year to CHF 3.3 billion.
Vabysmo sales skyrocketed 79% to CHF 2.8 billion on strong demand in all regions, mainly the United States.
Perjeta’s sales declined 1% year over year to CHF 2.8 billion.
Immuno-oncology drug Tecentriq’s (for advanced lung cancer, urothelial cancer and breast cancer) sales grew 1% to CHF 2.7 billion.
Actemra/RoActemra’s (rheumatoid arthritis and COVID-19) sales improved 5% year over year to CHF 1.9 billion.
Asthma drug Xolair generated sales of CHF 1.7 billion, up 11% year over year. Breast cancer drug Kadcyla generated sales of CHF1.5 billion, up 6% during the said time frame.
Evrysdi generated sales of CHF 1.2 billion, up 21% year over year.
Breast cancer drug Phesgo’s (a fixed-dose combination of Perjeta and Herceptin for subcutaneous injection) sales surged 58% year over year to CHF 1.2 billion.
Sales of the lung cancer drug Alecensa rose 7% to CHF 1.1 billion.
Herceptin sales declined 11% on a year-over-year basis to CHF 1 billion due to biosimilar competition in various countries.
Sales of Rituxan/MabThera (for blood cancer and rheumatoid arthritis) declined 16% to CHF 1 billion due to biosimilar erosion.
Sales of Avastin, approved for multiple oncology indications, were down 17% to CHF 943 million due to biosimilar competition in the United States and Europe.
Activase/TNKase sales came in at CHF 895 million, up 2%.
Sales of blood cancer drug Polivy surged 41% to CHF 817 million.
Blood cancer drug Gazyva/Gazyvaro’s sales totaled CHF 670 million, up 13% year over year.
Pulmozyme (cystic fibrosis) sales were flat year over year at CHF 329 million.
Mircera (anemia related to kidney disease) generated sales of CHF 304 million, down 1%.
Growth in the Diagnostics Division’s base business was driven by demand for immunodiagnostic products (+10%), which include cardiac, oncology and thyroid tests.
RHHBY Reiterates 2024 Guidance
Roche continues to expect total sales to grow in the mid-single-digit range (at CER). Core earnings per share are expected to grow in the high single-digit range, excluding the impact of the resolution of tax disputes in 2023.
Roche expects to increase its dividend in Swiss francs further.
Key Pipeline Updates
Roche won FDA approval for pipeline candidate, inavolisib, for the treatment of breast cancer, under the brand name Itovebi. The drug is approved in combination with Ibrance (palbociclib) and fulvestrant for the treatment of adults with endocrine-resistant, PIK3CA-mutated, hormone receptor (HR)-positive, human epidermal growth factor receptor 2 (HER2)-negative, locally advanced or metastatic breast cancer, as detected by an FDA-approved test, following recurrence on or after completing adjuvant endocrine therapy.
The FDA also approved Ocrevus Zunovo as the first and only twice-a-year 10-minute subcutaneous injection for patients with relapsing and progressive multiple sclerosis.
The European Commission approved Vabysmo for the treatment of retinal vein occlusion.
Our Take
Roche’s performance in the third quarter and the first half nine months of 2024 was impressive on high demand for its drugs and tests.
Ophthalmology drug Vabysmo continued its stellar performance. The drug posed stiff competition to Regeneron’s (REGN - Free Report) ophthalmology Eylea. Positive data from additional studies bode well for the drug.
Regeneron co-developed Eylea with Bayer.
Growth in hemophilia treatment Hemlibra and multiple sclerosis drug Ocrevus also boosted the top line.
Meanwhile, Roche is also looking to diversify and make inroads in the lucrative obesity market in the wake of declining sales from legacy drugs due to competition from biosimilars.
Roche forayed into the obesity market when it acquired privately owned Carmot Therapeutics in January 2024 for $2.7 billion. The acquisition added a differentiated incretin portfolio with three candidates — CT-388, CT-996 and CT-868 — in its pipeline.
However, the stock took a hit last month when RHHBY presented results of an early-stage study on CT-996 on concerns of side effects.
Roche is, anyway, a pretty late entrant in the obesity market, which is currently one of the most lucrative spaces in the healthcare sector, dominated by bigwigs like Novo Nordisk (NVO - Free Report) and Eli Lilly (LLY - Free Report) .
The stupendous success of Novo Nordisk’s obesity drug, Wegovy, significantly fueled the company’s top line. Eli Lilly’s Zepbound, too, witnessed an astounding uptake owing to solid demand.
Image: Bigstock
Vabysmo, Hemlibra Drive Roches Sales in Q3 & First 9 Months of 2024
Swiss pharma giant Roche Holding AG (RHHBY - Free Report) posted strong growth in the third quarter. Sales increased 6% year over year to CHF 15.1 billion and were up 9% at constant exchange rates (CER).
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The company reports under two divisions — Pharmaceuticals and Diagnostics. All growth rates mentioned below are on a year-over-year basis and at CER.
Total sales increased 6% in the first nine months of 2024 to CHF 45 billion. Excluding COVID-19-related products, sales increased 8%.
Sales in the Pharmaceuticals Division grew 7% in the first nine months to CHF 34.3 billion, driven by strong growth in demand for its key drugs.
The Diagnostics division’s sales rose 5% year over year to CHF 10.7 billion. The base business in this division grew 8%, driven by demand for immunodiagnostic, pathology and molecular solutions products.
Roche’s shares have risen 8.2% year to date compared with the industry’s growth of 19.1%.
Image Source: Zacks Investment Research
RHHBY's Key Drugs Fuel Growth
Vabysmo (eye diseases) was the biggest growth driver of sales, with Phesgo (breast cancer), Ocrevus (multiple sclerosis), Hemlibra (hemophilia) and Polivy (blood cancer) being the other significant contributors. These five drugs (in unison) generated sales of CHF 13.2 billion, reflecting an increase of CHF 2.7 billion from that recorded in the corresponding period of 2023.
Sales of Ocrevus, used to treat two types of multiple sclerosis, increased 9% year over year to CHF 5 billion.
Sales of hemophilia A drug Hemlibra surged 10% year over year to CHF 3.3 billion.
Vabysmo sales skyrocketed 79% to CHF 2.8 billion on strong demand in all regions, mainly the United States.
Perjeta’s sales declined 1% year over year to CHF 2.8 billion.
Immuno-oncology drug Tecentriq’s (for advanced lung cancer, urothelial cancer and breast cancer) sales grew 1% to CHF 2.7 billion.
Actemra/RoActemra’s (rheumatoid arthritis and COVID-19) sales improved 5% year over year to CHF 1.9 billion.
Asthma drug Xolair generated sales of CHF 1.7 billion, up 11% year over year. Breast cancer drug Kadcyla generated sales of CHF1.5 billion, up 6% during the said time frame.
Evrysdi generated sales of CHF 1.2 billion, up 21% year over year.
Breast cancer drug Phesgo’s (a fixed-dose combination of Perjeta and Herceptin for subcutaneous injection) sales surged 58% year over year to CHF 1.2 billion.
Sales of the lung cancer drug Alecensa rose 7% to CHF 1.1 billion.
Herceptin sales declined 11% on a year-over-year basis to CHF 1 billion due to biosimilar competition in various countries.
Sales of Rituxan/MabThera (for blood cancer and rheumatoid arthritis) declined 16% to CHF 1 billion due to biosimilar erosion.
Sales of Avastin, approved for multiple oncology indications, were down 17% to CHF 943 million due to biosimilar competition in the United States and Europe.
Activase/TNKase sales came in at CHF 895 million, up 2%.
Sales of blood cancer drug Polivy surged 41% to CHF 817 million.
Blood cancer drug Gazyva/Gazyvaro’s sales totaled CHF 670 million, up 13% year over year.
Pulmozyme (cystic fibrosis) sales were flat year over year at CHF 329 million.
Mircera (anemia related to kidney disease) generated sales of CHF 304 million, down 1%.
Growth in the Diagnostics Division’s base business was driven by demand for immunodiagnostic products (+10%), which include cardiac, oncology and thyroid tests.
RHHBY Reiterates 2024 Guidance
Roche continues to expect total sales to grow in the mid-single-digit range (at CER). Core earnings per share are expected to grow in the high single-digit range, excluding the impact of the resolution of tax disputes in 2023.
Roche expects to increase its dividend in Swiss francs further.
Key Pipeline Updates
Roche won FDA approval for pipeline candidate, inavolisib, for the treatment of breast cancer, under the brand name Itovebi. The drug is approved in combination with Ibrance (palbociclib) and fulvestrant for the treatment of adults with endocrine-resistant, PIK3CA-mutated, hormone receptor (HR)-positive, human epidermal growth factor receptor 2 (HER2)-negative, locally advanced or metastatic breast cancer, as detected by an FDA-approved test, following recurrence on or after completing adjuvant endocrine therapy.
The FDA also approved Ocrevus Zunovo as the first and only twice-a-year 10-minute subcutaneous injection for patients with relapsing and progressive multiple sclerosis.
The European Commission approved Vabysmo for the treatment of retinal vein occlusion.
Our Take
Roche’s performance in the third quarter and the first half nine months of 2024 was impressive on high demand for its drugs and tests.
Ophthalmology drug Vabysmo continued its stellar performance. The drug posed stiff competition to Regeneron’s (REGN - Free Report) ophthalmology Eylea. Positive data from additional studies bode well for the drug.
Regeneron co-developed Eylea with Bayer.
Growth in hemophilia treatment Hemlibra and multiple sclerosis drug Ocrevus also boosted the top line.
Meanwhile, Roche is also looking to diversify and make inroads in the lucrative obesity market in the wake of declining sales from legacy drugs due to competition from biosimilars.
Roche forayed into the obesity market when it acquired privately owned Carmot Therapeutics in January 2024 for $2.7 billion. The acquisition added a differentiated incretin portfolio with three candidates — CT-388, CT-996 and CT-868 — in its pipeline.
However, the stock took a hit last month when RHHBY presented results of an early-stage study on CT-996 on concerns of side effects.
Roche is, anyway, a pretty late entrant in the obesity market, which is currently one of the most lucrative spaces in the healthcare sector, dominated by bigwigs like Novo Nordisk (NVO - Free Report) and Eli Lilly (LLY - Free Report) .
The stupendous success of Novo Nordisk’s obesity drug, Wegovy, significantly fueled the company’s top line. Eli Lilly’s Zepbound, too, witnessed an astounding uptake owing to solid demand.
RHHBY's Zacks Rank
Roche currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.