Roche Reports Nine Months Sales Growth Despite Lower Sales From COVID-19 Products

Roche Holdings AG's RHHBY nine months sales increased by 1% (down 6% in CHF) to CHF 44.1 billion, even though the company had to compensate for the significant drop in sales of COVID-19 products and the biosimilar erosion (a total of CHF 4.0 billion or 9% of sales).

Excluding COVID-19 products, Group sales grew by 9%. Quarterly sales reached CHF14.3 billion, up 7% Y/Y. 

Pharmaceuticals Division sales increased 9% to CHF 33.6 billion, led by high demand for newer medicines.

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In a statement, the Swiss drugs and diagnostics maker also said it continued to expect a decrease in group sales and adjusted earnings per share in the "low single-digit" percentage range in 2023, without the effect of currency swings.

Roche predicted a decline in sales of COVID-19 products of about CHF 4.5 billion. It had previously seen a sales drop of CHF 5 billion.

Sales of the Diagnostics Division's base business grew 7% across all major markets. The primary growth drivers were immunodiagnostics, particularly cardiac tests and diagnostic solutions for clinical chemistry.

Overall, the Diagnostics Division achieved sales of CHF 10.4 billion. The 18% decrease was in line with the anticipated significant drop in demand for COVID-19 tests (CHF 0.4 billion in the first nine months of 2023, in contrast to CHF 3.6 billion in the same period last year).

Price Action: RHHBY shares closed at $34.30 on Wednesday.