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Roche

Tamiflu drop slows revenue growth

Roche 2Q10

2Q10 Revenues: $11.2 billion (flat)

YTD Revenues: $22.8 billion (+7%)

YTD Earnings: $5.1 billion (+43%)

Comments: Pharma sales were down 2% in 2Q10 to $8.7 billion, and were up 6% to $17.9 billion in 1H10. Half-year revenues were driven by Avastin ($3.1 billion), Rituxan ($3.1 billion) and Herceptin ($2.6 billion). The U.S. market accounted for 38% of pharma revenues. As expected, Tamiflu revenues dropped significantly after the previous year’s H1N1 flu-related stockpiling efforts. Avastin sales may pull back, following a vote by an FDA advisory committee recommending against use in a key breast cancer indication. Lucentis sales rose 27% to $645 million, an RA treatment Actemra posted $143 million in 1H10 sales globally, as it continues to gain new regional markets. Pharma R&D expenses in 1H10 were flat at $3.7 billion. The diagnostics division posted sales growth of 7% to reach $4.9 billion during the half-year.

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