SWISS DRUGMAKER Roche gave a bullish forecast for the next two years on the back of its $47 billion (€33 billion) acquisition of Genentech, and said it would expand capacity for H1N1 flu drug Tamiflu.
US drugmakers Bristol-Myers Squibb and Wyeth also posted strong results yesterday, continuing an impressive earnings season for the healthcare sector, which is less vulnerable to recession than other industries.
Roche missed forecasts with a 29 per cent drop in first-half net profit, hit by costs related to the Genentech purchase this year, but its stock rose thanks to strength of its underlying business.
Tamiflu sales rose more than 200 per cent to just over 1 billion Swiss francs (€657 million) and chief executive Severin Schwan said Roche was able to meet all orders. The group expects similar Tamiflu sales in the second half.
Roche’s first-half net profit fell to 4.1 billion Swiss francs from 5.7 billion francs in the same period last year and compared with an average forecast of 5 billion francs, according to a Reuters poll of 15 analysts. It bought out US biotech partner Genentech this year to reinforce its position in cancer medicines, incurring exceptional costs of 2 billion francs in the first half.
“We also see the first cost synergies coming through from the Genentech integration,” Mr Schwan said at Roche’s Basel headquarters.
