Roche expects competition to cut into profit
Drug maker says spending on new drugs is likely to stall its margin growth as it grapples with patent expirations of some cancer medicines
Zurich — Roche on Wednesday said competition and spending on new drugs was likely to stall its margin growth in 2017 as the Swiss drug maker grapples with patent expirations of some blockbuster medicines that will expose them to competition. The Swiss drug maker also dismissed speculation it was looking to unload its diabetes care unit, saying it was "committed" to the business. Core earnings per share (EPS) this year were now forecast to grow broadly in line with a low- to mid-single-digit sales rise, the company said. That contrasts with 2016 when core EPS rose 5% to Sf14.53 ($14.66), while sales grew 4% in constant currencies to Sf50.6bn. The drug maker’s three cancer blockbusters Rituxan, Herceptin and Avastin, which account for annual sales of more than Sf20bn, face impending competition from so-called biosimilar copies. The first copies of Rituxan and Herceptin could arrive in Europe later this year. Consequently, CEO Severin Schwan said he had dialled back 2017 profit growth ...
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