Rebound In COVID-19 Tests Lift Roche's Half-Year Sales, Oncology Still Hit By Biosimilars, Pandemic

Roche Holding AG's RHHBY 1H 2021 sales increased by 8% Y/Y at constant exchange rates (CER) to CHF 30.7 billion as peak demand for COVID-19 tests helped the Company rebound from a weak start to the year.
Diagnostics division sales grew 51% CER to around CHF 9 billion due to demand for COVID tests and strong momentum in routine testing, compensating for a 3% CER decline in pharmaceuticals sales.
The portfolio of COVID-19 tests contributed to total sales of CHF 2.5 billion (CHF 0.7 billion in 2020); the demand for COVID-19 tests is likely to decrease in the second half of 2021, Roche said.
However, drug sales returned to growth in the second quarter as new medicines performed well.
Roche's oncology business had still not returned to pre-pandemic levels, as sales decreased by 15% to CHF 10 billion due to the biosimilar competition for MabThera/Rituxan, Herceptin, and Avastin, partially compensated by the new products Tecentriq, Kadcyla, and Alecensa.
Core earnings per share rose 6% to CHF 10.56.
Roche maintained its forecast for 2021 sales to grow at a low- to the mid-single-digit rate at constant exchange rates, with core earnings per share growing about the same as sales.
It expects to increase its dividend, it added.
Price Action: RHHBY shares closed at $48.55 on Wednesday.

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