Roche posts 3% profit rise, Fritz Gerber stepping down as chairman in 2001

Having reported a rise of 31% in sales for 1998 to 24.66 billion Swissfrancs ($17.61 billion) at the beginning of the year (Marketletter January 18), Roche now says that net income increased 3% to 4.39 million francs, despite the acquisition of the Corange Group (incorporating Boehringer Mannheim) and Tastemaker. Growth in earnings was held back by a 31% decline in non-operating income, though operating profit rose 21% to 4.35 billion francs.

The company believes this last figure is all the more impressive given its significant investments in expanding its sales force and the launch of new drugs. In terms of R&D, spending in the pharmaceutical division rose 7.5% to 2.74 billion francs.

Roche's results were in line with analysts' expectations and reflected a successful, if somewhat fraught, year for the company. Following the worldwide withdrawal of the antihypertensive Posicor (mibefradil) and suspension of sales in the European Union and elsewhere of its Parkinson's disease treatment Tasmar (tolcapone), Roche's antiobesity drug Xenical (orlistat) was delayed in the USA when the Food and Drug Administration asked for additional clinical trials data last year (Marketletters passim) prior to final approval of the product. This has now been filed, however, and Birgitt Bulhoff at Bank Sarasin expects US approval of Xenical in the second quarter. James McKean at Morgan Stanley added that the big issue in the short term is whether and when approval is given, while Michael Sjoestroem, pharmaceutical analyst for Pictet & Cie Banquiers, told AFX News that he expects Xenical to be launched in the USA in September or October this year.