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Roche Reports 7% 1H25 Sales Growth, Key Drugs Perform Well
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Key Takeaways
RHHBY's 1H25 sales rose 7% to CHF 30.9B, led by 10% growth in the Pharmaceuticals division.
Top five drugs drove CHF 10.6B in sales, offsetting declines from biosimilar-hit legacy products.
Core EPS rose 12% to CHF 11.08, with profit aided by strong sales and effective cost management.
Swiss pharma giant Roche Holding AG ((RHHBY - Free Report) ) reported sales of CHF 30.9 billion for the first half of 2025, up 4% year over year driven by the strong demand of drugs. Sales were up 7% at constant exchange rates (CER).
Core earnings per share totaled CHF 11.08 in the first half, up 12% (CER) from the year-ago period.
The company reports under two divisions — Pharmaceuticals and Diagnostics. All growth rates mentioned below are on a year-over-year basis and at CER.
Sales in the Pharmaceuticals Division grew 10% in the first half to CHF 24 billion, driven by strong growth in demand for its key drugs — Phesgo (breast cancer), Xolair (food allergies), Hemlibra (hemophilia A), Vabysmo (severe eye diseases) and Ocrevus (multiple sclerosis or MS).
The Diagnostics division’s sales were flat at CHF 7 billion as strong demand for pathology solutions and blood screening tests offset the impact of healthcare pricing reforms in China.
Roche’s shares have risen 20.4% year to date compared with the industry’s growth of 0.9%.
Image Source: Zacks Investment Research
The company posted second-quarter 2025 revenues of CHF 15.5 billion were up 8% at CER driven by growth in the pharmaceuticals division.
RHHBY’s Key Drugs Fuel Growth in First Half
The top five growth drivers — Phesgo, Xolair, Hemlibra, Vabysmo and Ocrevus — generated total sales of CHF 10.6 billion, reflecting an increase of CHF 1.7 billion at CER compared to the first half of 2024.
The increase in the sales of these drugs offset the decline in sales of Avastin (various types of cancer), Herceptin (breast and gastric cancer), MabThera/Rituxan (blood cancer, rheumatoid arthritis), Lucentis (severe eye diseases) and Esbriet (lung disease) due to loss of exclusivity.
MS Ocrevus generated sales of $3.5 billion, up 8%.
Sales of hemophilia A drug Hemlibra surged 17% year over year to CHF 2.4 billion.
Vabysmo sales grew 18% to CHF 2.1 billion on strong demand in all regions.
Immuno-oncology drug Tecentriq’s (for advanced lung cancer, urothelial cancer and breast cancer) sales were down 1% to CHF 1.7 billion.
Perjeta’s sales were down 12% year over year to CHF 1.6 billion.
Xolair sales surged 34% to CHF 1.4 billion.
Actemra/RoActemra’s (rheumatoid arthritis and COVID-19) sales improved 4% year over year to CHF 1.3 billion.
Breast cancer drug Phesgo’s (a fixed-dose combination of Perjeta and Herceptin for subcutaneous injection) sales skyrocketed 55% year over year to CHF 1.2 billion.
Breast cancer drug Kadcyla generated sales of CHF 1 billion, up 9% during the said time frame.
Evrysdi generated sales of CHF 869 million, up 7% year over year.
Sales of the lung cancer drug Alecensa rose 8% to CHF 802 million.
Sales of blood cancer drug Polivy surged 46% to CHF 730 million.
Sales of Rituxan/MabThera declined 8% to CHF 630 million due to biosimilar erosion.
Herceptin sales plunged 21% on a year-over-year basis to CHF 560 million due to biosimilar competition in various countries.
Activase/TNKase sales totaled CHF 550 million, down 5%.
Sales of Avastin, approved for multiple oncology indications, were down 17% to CHF 522 million due to biosimilar competition.
Blood cancer drug Gazyva/Gazyvaro’s sales totaled CHF 490 million, up 14% year over year.
Pulmozyme (cystic fibrosis) sales rose 11% year over year to CHF 239 million.
Core operating profit grew 11%, driven by higher sales and effective cost management.
RHHBY 2025 Guidance Reiterated
Roche expects total sales to grow in the mid-single-digit range (at CER) in 2025. Core earnings per share are expected to grow in the high single-digit range. Roche expects to increase its dividend in Swiss francs further.
Key Pipeline Updates
The European Commission approved Itovebi for patients with ER-positive, HER2-negative, advanced breast cancer with a PIK3CA mutation. Earlier, the FDA also approved Itovebi in combination with Ibrance (palbociclib) and fulvestrant for the treatment of adults with endocrine-resistant, PIK3CA-mutated, hormone receptor (HR)-positive, HER2-negative, locally advanced or metastatic breast cancer, as detected by an FDA-approved test, following recurrence on or after completing adjuvant endocrine therapy.
However, the FDA issued a complete response letter for its supplemental biologics license application (sBLA) for Columvi (glofitamab) in combination with gemcitabine and oxaliplatin (GemOx) for the treatment of people with relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL) who are not candidates for autologous stem cell transplant.
Roche has decided to advance prasinezumab into phase III development for early-stage Parkinson’s disease. Results from phase IIb PADOVA and longer-term follow-up data suggest clinical benefit on top of symptomatic treatment in early-stage Parkinson’s disease.
Roche has a collaboration with Prothena ((PRTA - Free Report) ) for prasinezumab. It is obliged to make milestone payments to PRTA.
Our Take on RHHBY's Perfomance
Roche’s performance in the first half of 2025 was good as high demand for key drugs offset the decline in sales of legacy drugs. MS drug Ocrevus and ophthalmology drug Vabysmo continued their stellar performances.
The drug has given stiff competition to Regeneron’s ((REGN - Free Report) ) ophthalmology drug Eylea.
Regeneron co-developed Eylea with Bayer.
Growth in hemophilia treatment Hemlibra and multiple sclerosis drug Ocrevus also boosted the top line.
However, pipeline setbacks weigh on the stock. Earlier in the week, Roche announced that the phase III ARNASA study on chronic obstructive pulmonary disease (COPD) candidate astegolimab did not meet the primary endpoint of a statistically significant reduction in the annualized exacerbation rate (AER) at 52 weeks.
Nonetheless, the phase IIb ALIENTO study met the primary endpoint of a statistically significant reduction in the AER at 52 weeks when astegolimab was given every two weeks.
Roche also expects loss of exclusivity for key drugs to adversely impact sales in 2025.
The performance of the Diagnostic division was also disappointing.
Image: Bigstock
Roche Reports 7% 1H25 Sales Growth, Key Drugs Perform Well
Key Takeaways
Swiss pharma giant Roche Holding AG ((RHHBY - Free Report) ) reported sales of CHF 30.9 billion for the first half of 2025, up 4% year over year driven by the strong demand of drugs. Sales were up 7% at constant exchange rates (CER).
Core earnings per share totaled CHF 11.08 in the first half, up 12% (CER) from the year-ago period.
The company reports under two divisions — Pharmaceuticals and Diagnostics. All growth rates mentioned below are on a year-over-year basis and at CER.
Sales in the Pharmaceuticals Division grew 10% in the first half to CHF 24 billion, driven by strong growth in demand for its key drugs — Phesgo (breast cancer), Xolair (food allergies), Hemlibra (hemophilia A), Vabysmo (severe eye diseases) and Ocrevus (multiple sclerosis or MS).
The Diagnostics division’s sales were flat at CHF 7 billion as strong demand for pathology solutions and blood screening tests offset the impact of healthcare pricing reforms in China.
Roche’s shares have risen 20.4% year to date compared with the industry’s growth of 0.9%.
Image Source: Zacks Investment Research
The company posted second-quarter 2025 revenues of CHF 15.5 billion were up 8% at CER driven by growth in the pharmaceuticals division.
RHHBY’s Key Drugs Fuel Growth in First Half
The top five growth drivers — Phesgo, Xolair, Hemlibra, Vabysmo and Ocrevus — generated total sales of CHF 10.6 billion, reflecting an increase of CHF 1.7 billion at CER compared to the first half of 2024.
The increase in the sales of these drugs offset the decline in sales of Avastin (various types of cancer), Herceptin (breast and gastric cancer), MabThera/Rituxan (blood cancer, rheumatoid arthritis), Lucentis (severe eye diseases) and Esbriet (lung disease) due to loss of exclusivity.
MS Ocrevus generated sales of $3.5 billion, up 8%.
Sales of hemophilia A drug Hemlibra surged 17% year over year to CHF 2.4 billion.
Vabysmo sales grew 18% to CHF 2.1 billion on strong demand in all regions.
Immuno-oncology drug Tecentriq’s (for advanced lung cancer, urothelial cancer and breast cancer) sales were down 1% to CHF 1.7 billion.
Perjeta’s sales were down 12% year over year to CHF 1.6 billion.
Xolair sales surged 34% to CHF 1.4 billion.
Actemra/RoActemra’s (rheumatoid arthritis and COVID-19) sales improved 4% year over year to CHF 1.3 billion.
Breast cancer drug Phesgo’s (a fixed-dose combination of Perjeta and Herceptin for subcutaneous injection) sales skyrocketed 55% year over year to CHF 1.2 billion.
Breast cancer drug Kadcyla generated sales of CHF 1 billion, up 9% during the said time frame.
Evrysdi generated sales of CHF 869 million, up 7% year over year.
Sales of the lung cancer drug Alecensa rose 8% to CHF 802 million.
Sales of blood cancer drug Polivy surged 46% to CHF 730 million.
Sales of Rituxan/MabThera declined 8% to CHF 630 million due to biosimilar erosion.
Herceptin sales plunged 21% on a year-over-year basis to CHF 560 million due to biosimilar competition in various countries.
Activase/TNKase sales totaled CHF 550 million, down 5%.
Sales of Avastin, approved for multiple oncology indications, were down 17% to CHF 522 million due to biosimilar competition.
Blood cancer drug Gazyva/Gazyvaro’s sales totaled CHF 490 million, up 14% year over year.
Pulmozyme (cystic fibrosis) sales rose 11% year over year to CHF 239 million.
Core operating profit grew 11%, driven by higher sales and effective cost management.
RHHBY 2025 Guidance Reiterated
Roche expects total sales to grow in the mid-single-digit range (at CER) in 2025. Core earnings per share are expected to grow in the high single-digit range. Roche expects to increase its dividend in Swiss francs further.
Key Pipeline Updates
The European Commission approved Itovebi for patients with ER-positive, HER2-negative, advanced breast cancer with a PIK3CA mutation. Earlier, the FDA also approved Itovebi in combination with Ibrance (palbociclib) and fulvestrant for the treatment of adults with endocrine-resistant, PIK3CA-mutated, hormone receptor (HR)-positive, HER2-negative, locally advanced or metastatic breast cancer, as detected by an FDA-approved test, following recurrence on or after completing adjuvant endocrine therapy.
However, the FDA issued a complete response letter for its supplemental biologics license application (sBLA) for Columvi (glofitamab) in combination with gemcitabine and oxaliplatin (GemOx) for the treatment of people with relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL) who are not candidates for autologous stem cell transplant.
Roche has decided to advance prasinezumab into phase III development for early-stage Parkinson’s disease. Results from phase IIb PADOVA and longer-term follow-up data suggest clinical benefit on top of symptomatic treatment in early-stage Parkinson’s disease.
Roche has a collaboration with Prothena ((PRTA - Free Report) ) for prasinezumab. It is obliged to make milestone payments to PRTA.
Our Take on RHHBY's Perfomance
Roche’s performance in the first half of 2025 was good as high demand for key drugs offset the decline in sales of legacy drugs. MS drug Ocrevus and ophthalmology drug Vabysmo continued their stellar performances.
The drug has given stiff competition to Regeneron’s ((REGN - Free Report) ) ophthalmology drug Eylea.
Regeneron co-developed Eylea with Bayer.
Growth in hemophilia treatment Hemlibra and multiple sclerosis drug Ocrevus also boosted the top line.
However, pipeline setbacks weigh on the stock. Earlier in the week, Roche announced that the phase III ARNASA study on chronic obstructive pulmonary disease (COPD) candidate astegolimab did not meet the primary endpoint of a statistically significant reduction in the annualized exacerbation rate (AER) at 52 weeks.
Nonetheless, the phase IIb ALIENTO study met the primary endpoint of a statistically significant reduction in the AER at 52 weeks when astegolimab was given every two weeks.
Roche also expects loss of exclusivity for key drugs to adversely impact sales in 2025.
The performance of the Diagnostic division was also disappointing.
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.