Roche (RHHBY) Sales, Earnings Grow in 1H24, '24 EPS View Raised

Core Insights - Roche Holding AG reported strong growth in the second quarter and first half of 2024, leading to an increase in annual earnings guidance [21][17] - Total sales increased by 5% in the first half to CHF 29.8 billion, with an 8% increase when excluding COVID-19-related products [22] - The company operates under two divisions: Pharmaceuticals and Diagnostics, both showing significant growth [1] Pharmaceuticals Division - Sales in the Pharmaceuticals Division improved by 5% in the first half to CHF 22.6 billion, driven by strong demand for key drugs [2] - Ocrevus sales increased by 8% year over year to CHF 3.3 billion [4] - Vabysmo was the biggest growth driver, with sales skyrocketing by 93% to CHF 1.8 billion [9] - Other significant contributors included Phesgo (up 60% to CHF 799 million), Evrysdi (up 25% to CHF 838 million), and Polivy (up 54% to CHF 513 million) [11][28][14] - Sales of Perjeta declined by 2% to CHF 1.9 billion, while Herceptin and Avastin saw declines of 11% and 16% respectively due to biosimilar competition [8][12][13] Diagnostics Division - Sales in the Diagnostics Division rose by 5% to CHF 7.2 billion, with the base business growing by 9% driven by demand for immunodiagnostic products [23] - Sales of COVID-19 tests declined significantly to CHF 0.1 billion from CHF 0.4 billion in the same period last year [32] Financial Performance - Second-quarter revenues increased by 7% to CHF 15.4 billion, with a 9% increase at constant exchange rates [5] - Core earnings per share totaled CHF 10.23 in the first half, up 9% from the previous year [6] - The company raised its earnings outlook for the full year, expecting core earnings per share to grow in the high single-digit range [33] Strategic Developments - Roche is diversifying into the obesity market with the acquisition of Carmot Therapeutics for $2.7 billion, adding three candidates to its pipeline [19] - The FDA granted priority review to inavolisib for advanced hormone receptor-positive, HER2-negative breast cancer [17] - Roche continues to expect total sales growth in the mid-single-digit range at constant exchange rates [33]