Key Takeaways:
Roche Holding AG (SIX: RO, ROP) reported a 6 percent increase in first-quarter sales at constant exchange rates, as strong demand for its newer medicines for severe diseases offset the impact of a significantly stronger Swiss franc.
"Our diversified portfolio across both divisions, together with continued pipeline progress, positions us well for sustained future growth in a dynamic geopolitical environment," the company said in a statement, confirming its full-year outlook.
Group sales reached 14.72 billion Swiss francs ($16.1 billion), a figure that represents a 5 percent decline in reported Swiss franc terms due to currency effects. The company's core Pharmaceuticals Division saw sales rise 7 percent at constant rates to CHF 11.47 billion, while the Diagnostics Division grew by 3 percent.
The results underscore the successful transition of Roche's portfolio toward newer growth drivers. The top five medicines—Vabysmo for eye diseases, Ocrevus for multiple sclerosis, Hemlibra for haemophilia A, Phesgo for breast cancer, and Xolair for asthma—collectively grew sales by 14 percent to CHF 5.3 billion, accounting for a significant portion of the pharmaceutical revenue.
Sales in the United States grew 5 percent at constant exchange rates, while the International region, which includes China, saw a robust 16 percent expansion. In China specifically, sales jumped 14 percent as newly reimbursed drugs like Phesgo and Vabysmo gained traction. Conversely, sales in Europe saw a slight 1 percent decline.
For 2026, Roche continues to expect an increase in group sales in the mid-single-digit range at constant exchange rates. The company also targets core earnings per share growth in the high-single-digit range and plans to further increase its dividend in Swiss francs. The confirmation of guidance suggests confidence in overcoming currency headwinds and patent expirations for older drugs like Avastin and Herceptin. Investors will watch for continued uptake of key growth products throughout the remainder of the year.
This article is for informational purposes only and does not constitute investment advice.
