Swiss drugmaker Roche Holding , which is bidding $5.7 billion for US gene sequencing company Illumina, gave an upbeat sales outlook for 2012 when it expects new product launches to drive its performance.
Roche also said today core 2011 earnings fell 4 per cent to 12.30 Swiss francs, compared with a forecast for 12.40 francs, as the strong Swiss currency weighed.
"With 17 positive late-stage clinical trials in 2011, we continue to build our future business with innovative products," chief executive Severin Schwan said.
"Furthermore, the planned acquisition of Illumina will strengthen our presence in the fast-growing sequencing market and enable the discovery of complex biomarkers for research and clinical use."
The gene sequencing technology that Roche is targeting with its hostile bid for San Diego-based Illumina is central to medicine's future as it allows researchers to better predict how patients will respond to a drug.
The recent approval of Roche's skin cancer drug Zelboraf and its companion diagnostic, as well as strong study results from experimental breast cancer treatment pertuzumab have underscored the company's commitment to targeted medicines.
Roche could face a protracted bidding process after Illumina advised shareholders not to act on Roche's tender offer to buy the company at $44.50 per share. The offer expires on February 24th.
Analysts are now more upbeat about Roche's prospects after a slew of positive product news last year - a rebound from a disappointing year in 2010 - and investors are now looking forward to results from other key drugs, including experimental breast cancer therapy, T-DM1, expected later this year.
Reuters
