Roche posts strong first-half results and raises forecast

Swiss pharma giant Roche (ROG: SIX) saw its shares gain 2.66% to 244.65 Swiss francs early trading, after the company posted a strong set of financial results for the first half of 2018.

Group sales rose 7% to 28.1 billion francs ($28.24), beating the average forecast in a Reuters poll of 27.5 billion francs, and core earnings per share (EPS) grew 19% to 9.84 francs in the first half, exceeding the 9.03-franc estimate of eight analysts surveyed by Bloomberg.Excluding the effect of the US tax reform, core EPS grew 8%, ahead of sales. Core EPS growth reflects the strong underlying business performance. IFRS net income increased 33%, due to the underlying core results and lower impairment of intangible assets compared to 2017.

The results beat expectations on all levels, with Roche’s business “firing on all cylinders,” said Leerink analyst Ian Hilliker in a note to investors..

Sales in the Pharmaceuticals Division increased 7% to 21.8 billion francs. Key growth drivers were the recently launched medicines Ocrevus (ocrelizumab), used to treat two forms of multiple sclerosis, and cancer medicines Perjeta (pertuzumab), Alecensa (alectinib)and Tecentriq (atezolizumab). Tamiflu (oseltamivir) contributed with high sales at the beginning of the year due to a severe flu season. As expected, the strong growth reported for the Pharmaceuticals Division was partially offset by lower sales of MabThera/Rituxan (rituximab) and of Tarceva (erlotinib).