Roche's 2024 Sales and Earnings Beat, Key Drugs Perform Well

Core Insights - Roche Holding AG reported better-than-expected results for 2024, with total sales of $68.7 billion, surpassing the Zacks Consensus Estimate of $68 billion, and earnings per American Depositary Receipt of $2.67, exceeding the estimate of $2.56 [1][2] Sales Performance - Total sales grew 7% year over year at constant exchange rates (CER) to CHF 60.5 billion, driven by strong demand for drugs and diagnostics [1] - The Pharmaceuticals Division saw an 8% increase in sales to CHF 46.2 billion, fueled by demand for key drugs such as Vabysmo, Phesgo, Ocrevus, and Hemlibra [3] - The Diagnostics Division's sales rose 4% year over year to CHF 14.3 billion, with a notable drop in COVID-19-related product sales [4] Key Drug Performance - The top four growth drivers—Vabysmo, Phesgo, Ocrevus, and Hemlibra—achieved total sales of CHF 16.9 billion, an increase of CHF 3.3 billion from 2023 [7] - Vabysmo sales surged 68% to CHF 3.9 billion, while Ocrevus generated sales of $6.7 billion, up 9% [7] - Hemlibra sales increased 12% year over year to CHF 4.5 billion [7] Financial Metrics - Core operating profit grew 14%, attributed to higher sales, improved gross margin, and effective cost management [11] - Roche expects total sales to grow in the mid-single-digit range (at CER) in 2025, with core earnings per share anticipated to grow in the high single-digit range [12] Pipeline Developments - Roche acquired Poseida Therapeutics for $9.00 per share, with potential additional payments [13] - The FDA accepted a supplemental Biologics License Application for Columvi for DLBCL, while the phase IIb study of prasinezumab missed its primary endpoint [14][16] Market Position - Roche's shares have risen 10.6% year to date, contrasting with a 1.2% decline in the industry [5] - The company launched two new drugs in 2024—Itovebi for breast cancer and PiaSky for a serious blood disorder [18]