Roche's Group sales rose 6% to 46.8 billion Swiss francs in 2013 as a result of strong demand for Roche's biologic medicines in the area of oncology, immunology and ophthalmology as well as for its clinical laboratory diagnostic products, especially immunoassays. This sales performance contributed significantly to an 8% increase in the Group's core operating profit and, combined with lower financing costs, a 10% rise in core earnings per share. IFRS net income rose 22% to 11.4 billion Swiss francs as a result of lower restructuring costs and the reversal of previous impairment charges.
Sales of the Pharmaceuticals Division grew 7% to 36.3 billion Swiss francs due to the continued strength of established and new medicines for cancer (HER2 franchise, Avastin and MabThera/Rituxan) as well as good growth in medicines for rheumatoid arthritis (Actemra/RoActemra) and eye diseases (Lucentis). Sales growth was strongest in the United States (+10%) and emerging markets (+12%)3, which grew faster than Europe (+2%) and Japan (+2%).
The Diagnostics Division grew ahead of the in vitro market4, as all regions contributed to sales growth of 4%. Sales reached 10.5 billion Swiss francs with the most important contribution coming from continued strong demand for tests and instruments used in clinical laboratories, especially from Professional Diagnostics (+8%). As expected, the market environment for Diabetes Care (-3%) remained challenging in 2013 and Roche is continuing the restructuring measures that were initiated in 2012. Sales growth in Diagnostics was strongest in Asia-Pacific (+14%) and Latin America (+13%), and lower in mature markets: Europe (+2%), North America (+1%) and Japan (+2%).
The Swiss franc rose against a number of currencies in 2013, mainly the Japanese yen and the US dollar, while falling against the euro. Overall, this led to a negative impact on the results reported in Swiss francs.
During 2013 Roche's pharmaceutical R&D pipeline made significant progress both in oncology and in the areas of ophthalmology and immunology. The pipeline currently has 66 new molecular entities in clinical development of which 15 are in late-stage development. Based on promising mid-stage data Roche selected eight new compounds to progress to late-stage development during 2013: six compounds in oncology (anti-CD79b ADC, pan-PI3Ki, beta-sparing PI3Ki, alectinib (ALKi), Bcl-2i, anti-PDL1), etrolizumab for inflammatory bowel disease, lampalizumab for the eye disease geographic atrophy (an advanced form of dry AMD). In addition, Roche licensed-in oral octreotide, a treatment for the growth disorder, acromegaly.
Roche's CEO Severin Schwan mentioned: "2013 was a very good year for Roche. We exceeded our financial targets with strong demand for our existing products and positive uptake of recently launched medicines and diagnostics. With the launch of Perjeta and Kadcyla we have added a new generation of treatments for women with a particularly aggressive type of breast cancer. Another highlight was the launch of Gazyva for chronic lymphocytic leukemia (CLL), in the United States. In Diagnostics we introduced a range of new instruments and tests that further strengthen our position as market leader, including the cobas 8100 and a new HPV test for cervical cancer. With our strong product pipeline we are well positioned for future success."
About Roche
Headquartered in Basel, Switzerland, Roche is a leader in research-focused healthcare with combined strengths in pharmaceuticals and diagnostics. Roche is the world's largest biotech company, with truly differentiated medicines in oncology, immunology, infectious diseases, ophthalmology and neuroscience. Roche is also the world leader in in vitro diagnostics and tissue-based cancer diagnostics, and a frontrunner in diabetes management. Roche's personalised healthcare strategy aims at providing medicines and diagnostics that enable tangible improvements in the health, quality of life and survival of patients. Founded in 1896, Roche has been making important contributions to global health for more than a century. Twenty-four medicines developed by Roche are included in the WHO Model Lists of Essential Medicines, among them life-saving antibiotics, antimalarials and chemotherapy. In 2013 the Roche Group employed over 85,000 people worldwide, invested 8.7 billion Swiss francs in R&D and posted sales of 46.8 billion Swiss francs. Genentech, in the United States, is a wholly owned member of the Roche Group. Roche is the majority shareholder in Chugai Pharmaceutical, Japan.