Basel — Swiss drug maker Roche forecast on Thursday that US tax changes would help profit growth outstrip sales growth in 2018, while new drugs for multiple sclerosis and cancer would offset revenue declines from older medicines. Roche said it expected sales to stay flat or grow by a low-single-digit percentage. But core earnings per share (EPS) were targeted to grow by a high single digit, helped by US tax reform, which will reduce Roche’s tax rate from 26.6% in 2017 to "the low twenties". Tax changes under US President Donald Trump have had a big effect on investor sentiment towards drug makers in recent weeks, with AbbVie’s stock rising after it projected a big benefit, while Pfizer’s was hit by disappointment that its tax rate would not be lower. Excluding the tax changes, profit would grow in line with sales, Roche said, as CE Severin Schwan confirmed the drug maker expected to boost sales and profit even as its $22.5bn-a-year drugs trio of Rituxan, Herceptin and Avastin faces ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.