Roche Holding sales disappoint as drugs decline eclipses Covid-19 tests

Roche Holding AG’s third-quarter sales fell short of estimates as a boost from Covid-19 tests and new medicines weren’t enough to offset a decline from aging prescription drugs.

The Swiss drugmaker’s revenue rose 1% to 14.7 billion francs ($16.1 billion), the company said. Analysts expected sales of 15.4 billion francs, according to the average of eight estimates. The stock dropped as much as 2% in Zurich trading.

Roche has forged partnerships and used its diagnostics unit to get into the market for tests and potential treatments for Covid-19, helping it counteract a more challenging environment for its older medicines. These medicines face competition from cheaper copies called biosimilars even as some patients delay doctor’s visits on pandemic concerns.

“It was another tough three months for Roche,” Wimal Kapadia, an analyst at Sanford C. Bernstein, wrote in a note.

The sales drop for a trio of key older drugs accelerated last quarter. Revenue from breast cancer drug Herceptin plummeted 38%. Sales from Avastin and Rituxan, treatments for cancer and arthritis, respectively, sank by about one-third.

The antibody cocktail Roche is developing with Regeneron Pharmaceuticals Inc. to treat Covid-19 may start delivering soon after the U.S. company asked regulators there to authorize it for emergency use earlier this month. President Donald Trump took the experimental drug under a compassionate use program after becoming sick with the coronavirus.

The company said pharmaceuticals sales will probably recover in the fourth quarter.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

Leave a Comment

© 2020 Daily Dose of Market and Beyond News