Half Year 2024 Roche Holding AG Earnings Call Transcript
Key Points
- Group sales increased by 8%, with Pharma growing 8% and Diagnostics growing 9%.
- Core operating profit rose by 11%, driven by effective cost management.
- Several key regulatory approvals and filings were achieved, including Ocrevus subcutaneous in the EU and US, and Vabysmo prefilled syringe in the US.
- Strong performance in the base business, with high-single digit growth excluding COVID-19 impacts.
- Positive readouts in the obesity space and multiple new product launches in Diagnostics, such as the cobas Liat Respiratory Panel and continuous glucose monitoring system.
- Significant sales decrease in COVID-19 related products, impacting overall revenue by CHF 0.8 billion.
- Loss of exclusivity (LOE) impact of CHF 0.6 billion, affecting sales.
- Challenges in the Japanese market due to mandatory price cuts and a decline in Ronapreve sales.
- Increased financial expenses due to higher debt levels from previous M&A activities.
- Disappointing Phase 2/3 results for tiragolumab in non-small cell lung cancer, leading to the discontinuation of certain trials.
Thank you very much, and hello to everyone. Good morning, good afternoon, wherever you are. I'm really looking forward to sharing our half-year results with you today.
Now, let me take you through this slide first. We've had a very strong growth in the first half year. Group sales increased by 8%, excluding COVID by 8 -- by 5%, excluding COVID by 8%. And specifically in the second quarter, as you will see in a second, we had significant growth of 9%, overall. Pharma is growing very well in the base business with 8%, Diagnostics growing 9%.
Both the COVID-19 sales decrease and also the LOE impact, both in line with guidance. The sales decrease in COVID-19 is CHF0.8 billion and also the LOE impact is CHF0.6 billion. There was not much COVID impact in the second quarter. Core operating profit increased by 11%, so significant growth here due to good cost management and shifting resources within the organization. With that, our group core operating margin increased almost 2 percentage points. Our core EPS grew 9% and
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