Roche H1 net profit down 29% on Genentech integration costs

23 July 2009 10:14  [Source: ICIS news]

LONDON (ICIS news)--Roche posted a 29% drop in net income for the first six months of 2009 to Swiss francs (Swfr) 4.05bn (€2.66bn, $3.81bn), down from Swfr5.73bn in the same period last year, the Switzerland-based pharmaceutical company said on Thursday.

Net income during the six-month period ended 30 June was hit by exceptional operating expenses related to the acquisition and integration of Genentech, which Roche acquired for $46.8bn.

Roche’s sales increased by 9% year on year to Swfr24bn, while operating profit before exceptional items was up 13% at Swfr7.97bn.

The company said sales were driven by strong demand for oncology drugs as well as virology drugs such as Tamiflu and Pegasys.

Global sales of Tamiflu totalled Swfr1.01bn, up more than threefold from 2008, due to the worldwide spread of swine flu, Roche said.

In its outlook, Roche forecast sales to grow ahead of the market in 2009, with double-digit growth in core earnings per share (EPS) expected in 2009 and 2010 at constant exchange rates.

($1 = €0.70/€1 = Swfr1.52)

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By: Mark Watts
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