Swine flu boosts Roche sales figures
Swiss pharma giant Roche is selling even more of the anti-viral drug Tamiflu than expected, according to third quarter sales figures published Thursday morning. The company expects to rack up 2.7 billion francs this year from flu drug sales, thanks largely to the swine flu pandemic which has provided a temporary boost to company coffers. Analysts say although the results are marginally better than they predicted, the pharma sector overall is not performing well this year.
In a press statement issued Thursday, CEO Severin Schwan said: “The Roche Group continued to perform very strongly in the third quarter. Based on this performance, we expect another very good full-year result.” The pharma division should achieve high single figure sales growth, according to Roche, and analysts have noted that even without Tamiflu revenue growth is chugging along nicely at 6 per cent.
Roche sold 36.4 billion francs worth of drugs in the first 9 months of 2009, an increase of 11 per cent in local currencies on last year.
Sales marginally beat predictions from analysts at RBS in London, who anticipate a slight lift in earnings per share for 2009 thanks to the strong performance of Tamiflu. Zuercher Kantonalbank analyst, Michael Nawrath, said “the results met my expectations, but this was mainly driven by the pandemic sales of the drug Tamiflu”.
The company needs to beat the market; its products are expensive compared with other brands and cash is required to offset debt.
According to a presentation published on its website, Roche said the reasons for accelerated sales growth include anti-cancer medicines, integration with recent acquisition Genentech and new group leadership.
But the real driver of the third quarter figures was Tamiflu, which brought in over 1 billion francs in July, August and September. The company has not achieved close to this level of Tamiflu sales since a previous flu pandemic in 2007. Nawrath told Swisster that the pandemic has given Roche “a good short-term boost”. “It’s a lucky punch again," he said, referring to the 2007 outbreak.