Roche Reports 2024 Revenue of CHF 60.5 Billion, Driven by Strong Performance of Vabysmo, Hemlibra, and Diagnostic Innovations

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This is the Life Science Industry Observer Official Account's Issue #1262-1Article

Source: Analysis and Testing Encyclopedia Network

Roche recently announced its financial report, achieving revenue of 60.5 billion Swiss francs in 2024. Roche achieved 7% sales growth (3% growth at constant exchange rates), with a net profit attributable to shareholders of 8.277 billion Swiss francs in 2024, and a net profit margin of 13.7%. Core operating profit increased by 14% (8% growth in Swiss francs), reaching 20.8 billion Swiss francs, driven by sales growth, improved gross margin, and effective cost management.

Roche Diagnostics' revenue reached 14.352 billion Swiss francs, increasing by 4% year-on-year. The sales of its core business grew by 8%, mainly driven by the rising demand for immunoassay products, as well as strong sales performance in clinical chemistry tests, advanced staining solutions, and companion diagnostics.Diagnostic Business in China Generated Revenue of CHF 2.402 Billion in 2024, Decreasing by Approximately 3% Year-over-Year, Accounting for 16.7% of Roche's Entire Diagnostic Business.

In 2024, the company's overall operating profit was 13.417 billion, with an operating profit margin of 22.2%.

Roche's cost in 2023 was 16.283 billion, with a gross profit of 44.212 billion and a gross profit margin of 73.1%.R&D expenditure of 15.3 billion yuan, accounting for 25.3% of revenue;Selling and administrative expenses amounted to 14.896 billion, accounting for 24.6%.

   In 2024, Roche Group reported a 7% increase in sales at constant exchange rates (CER) and a 14% rise in core operating profit. According to International Financial Reporting Standards (IFRS), net income fell by 19%, while core earnings per share (Core EPS) grew by 7%. The appreciation of the Swiss franc against many currencies had an adverse impact on the 2023 results reported in Swiss francs, with sales declining by 4 percentage points, core operating profit and core earnings per share dropping by 6 percentage points, and IFRS net income falling by 7 percentage points.

Sales in the pharmaceuticals division increased to CHF 46.2 billion (2023: CHF 44.3 billion), growing 8% in constant exchange rates (CER), primarily driven by the sales growth of Vabysmo, along with increasing demand for Phesgo, Ocrevus, and Hemlibra. These four drugs collectively contributed an additional CHF 3.3 billion (CER) in sales. Sales of Avastin, Herceptin, MabThera/Rituxan, Esbriet, Lucentis, and Actemra/RoActemra decreased by a combined CHF 1 billion (CER) due to ongoing competition from biosimilars and generics. Sales of the COVID-19 drug Ronapreve significantly declined compared to CHF 500 million in sales from Japan in 2023.

The Diagnostics division reported sales of CHF 14.3 billion (2023: CHF 14.5 billion), representing a 4% increase in constant exchange rates (CER). This growth was impacted by the continued decline in sales from the division’s COVID-19 testing portfolio, which reached CHF 200 million in 2024, marking a 73% decrease in CER. Excluding COVID-19-related products, CER sales grew by 8% across all regions, primarily driven by increased demand for immunodiagnostics products.

    2024Annual Diagnosis Business by Product，

Core Laboratory: This segment focuses on central laboratories and provides diagnostic solutions in immunoassays, clinical chemistry, and customized biotechnology. Sales grew by 8%, with immunoassay products (such as cardiac and oncology tests) increasing by 9%, and clinical chemistry business growing by 8%. Sales increased across all regions, with the largest growth coming from the Europe, Middle East, and Africa (EMEA) region, which saw a 10% increase.

Molecular Laboratory: This area focuses on molecular laboratories and provides diagnostic solutions for pathogen detection, blood donor screening, sexual health, and genomics, including basic medical operations. Sales grew by 4%, driven by growth in blood screening and virology businesses as well as increased sales of genomic analysis tests from the basic medical operations. This growth was partially affected by the negative impact of COVID-19 related sales, particularly the decline in sales of SARS-CoV-2 test reagents on the cobas 6800/8800 systems.

Clinical Care: This area provides decentralized diagnostic solutions conducted directly with patients in emergency rooms, general practitioner clinics, and other settings, including personalized diabetes management solutions. A 17% decrease in sales was caused by the decline in sales of SARS-CoV-2 antigen rapid test kits. However, growth in the cobas liat molecular point-of-care product line partially offset this decline, while the ongoing contraction of the blood glucose monitoring market also impacted business performance.

Pathology Laboratory: This field provides diagnostic solutions for tissue biopsies and companion diagnostics, which are targeted diagnostics that help select specific treatment options. Driven by the growth in advanced staining and companion diagnostics businesses, sales increased by 17%, with growth across all regions.

 By regionIn the EMEA region, sales grew by 5%, primarily driven by the growth in sales of immunoassay products, clinical chemistry portfolios, and advanced staining solutions. Nevertheless, this growth was somewhat impacted by the ongoing contraction in the blood glucose monitoring market and a decline in demand for COVID-19 testing. In North America, growth was achieved across all customer segments, with immunoassay products and companion diagnostics being the main contributors to sales growth, offsetting the decline in COVID-19-related sales. In the Asia-Pacific region, sales declined by 5%, as the increase in sales of immunoassay products was offset by the decrease in demand for COVID-19-related testing.

In 2024, the sales of the pharmaceuticals division reached 46.2 billion Swiss francs (2023: 44.3 billion Swiss francs), representing an 8% increase at constant exchange rates (CER). Vabysmo was the primary growth driver, with its sales increasing by 1.6 billion Swiss francs (CER), including 1.1 billion Swiss francs (CER) from the U.S. market alone. The demand for Phesgo, Ocrevus, and Hemlibra also grew, contributing an additional 3.3 billion Swiss francs (CER) in sales alongside Vabysmo. This growth was partially offset by a combined sales decline of 1 billion Swiss francs (CER) for Avastin, Herceptin, MabThera/Rituxan, Esbriet, Lucentis, and Actemra/RoActemra, as competition from biosimilars and generics continued to impact the sales of these products.

Tumor/Hematology Therapy Field

Sales in the oncology/hematology treatment field increased by 7%, primarily driven by Phesgo, Hemlibra, and Polivy, partially offset by biosimilar competition for Avastin, Herceptin, and MabThera/Rituxan. In the oncology sector, sales of Tecentriq remained flat at CHF 3.6 billion, with growth in international markets and Europe offset by declines in the U.S. market due to ongoing competitive pressures. Sales of Perjeta reached CHF 3.6 billion, up 1%, mainly benefiting from international market growth, while sales in the U.S. declined due to a shift toward Phesgo but were offset by base effects from U.S. government stockpile adjustments made in 2023. Sales of Phesgo reached CHF 1.7 billion, marking a 62% increase. In hematology, Hemlibra’s sales grew by 12% to CHF 4.5 billion, partly supported by distributor inventory purchases in the U.S. during Q4 2024 and expanded use in non-inhibitor indications. Sales of Polivy surged by 39% to CHF 1.1 billion, particularly driven by strong performance in the U.S. market.

Neurology Treatment Field

Sales in the neuroscience field grew by 13%, mainly driven by the performance of Ocrevus, Evrysdi, and Elevidys. Ocrevus continued to be the top-selling drug in the pharmaceutical division, with sales reaching 6.7 billion Swiss francs, an increase of 9%, including a 5% growth in the U.S. market. Evrysdi saw sales growth across all regions, and Elevidys demonstrated high initial acceptance following its launch.

Field of Immunotherapy

In the field of immunotherapy, sales of Actemra/RoActemra increased by 5%, driven by growing demand from patients with rheumatoid arthritis. In the United States, sales of Xolair grew by 16%, primarily due to the expansion in chronic spontaneous urticaria indications and the drug's launch for food allergy indications.

Ophthalmology Treatment Field

Sales in the ophthalmology treatment area saw significant growth, primarily reflecting the increase in Vabysmo sales, partly offset by the decline in Lucentis sales. Vabysmo generated sales of 3.9 billion Swiss francs, with demand growing across all regions, particularly in the U.S. market. In other therapeutic areas, sales of Ronapreve were nearly zero compared to 2023.

Media Teleconference

In the earnings call for Q4 2024, Roche's senior management provided a detailed overview of the company’s performance and future outlook. Group sales increased by 7% year-over-year, with core operating profit growing by 14%. This growth was primarily driven by the strong performance of key products, including Vabysmo, Ocrevus, Hemlibra, Tecentriq, Perjeta, Phesgo, and Polivy, further boosting overall results.

At the regional level, Roche has achieved significant growth in multiple markets, especially in international markets. Meanwhile, the company announced that it would increase its dividend for the 38th consecutive year, demonstrating strong cash flow and shareholder return capabilities.

Looking ahead, Roche is optimistic about 2025, forecasting single-digit growth in group sales and high single-digit growth in core earnings per share. Additionally, the company plans to continue advancing its clinical trial pipeline, with expectations of 12 pivotal Phase III clinical trial results and 7 new molecular entities entering Phase III trials in the future.

Roche also emphasized that despite the limited impact of biosimilars, the continuous launch and success of new drugs will strongly support the company’s future growth. Overall, Roche is confident about its development in 2024 and beyond, expecting greater breakthroughs in new products and R&D.

Attachment:

Media Teleconference:https://www.gurufocus.com/news/2675270/full-year-2024-roche-holding-ag-earnings-call-transcript

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