Roche facing biosimilars competition, but reports solid results for 2020

Swiss pharma giant Roche (ROG: SIX) this morning announced 2020 financial results, showing that group sales increased 1% to 58.32 billion Swiss francs ($65.43 billion) at constant exchange rates (CER), but a 5% decline in Swiss francs, as a result of continued appreciation of the Swiss franc against most currencies, as well as biosimilars competition.

Core earnings per share (EPS), at 19.16 francs, grew ahead of sales at 4% (-5% in francs). IFRS net income of 15.07 francs increasing 17% (7% in francs), mainly due to the lower goodwill write-offs compared to the previous year. Roche’s shares edged up 1.65% to 321.20 francs by midday.

Pharmaceutical Division sales were 44.53 billion francs, a decline 2%; continued strong sales growth of newly launched medicines (+32%), largely offsets the impact of competition from biosimilars (-5.1 billion francs at CER), but not the additional COVID-19-related impact from missed medical appointments.