Swiss drugmaker Roche (ROPC.S) reported a 5% decline in first-quarter sales on Thursday, saying that adverse foreign exchange movements offset strong performance in its pharmaceuticals division.
The company noted that since the start of the Iran War at the end of February, the U.S. dollar has weakened against the Swiss franc. The dollar is down about 1% so far this year after falling roughly 12% last year, creating pressure on Roche’s international revenue.
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Quarterly group revenue came in at 14.7 billion Swiss francs (about $18.7 billion), matching analysts’ average forecast of roughly 14.7 billion francs, according to data compiled by Visible Alpha. Roche also reaffirmed its full-year guidance.
The company’s share price rose around 2% in mid-session trading, outperforming the broader Swiss market, which remained flat.
At constant exchange rates, first-quarter sales increased by 6%, supported by strong demand for its multiple sclerosis treatment Ocrevus and the once-monthly haemophilia drug Hemlibra. Sales of these drugs rose by 6% and 13%, respectively, in currency-adjusted terms during the quarter.
NEW DRUGS TO ENTER THE MARKET?
CEO Thomas Schinecker told the media that the company’s breast cancer pill giredestrant is expected to receive approval from the U.S. Food and Drug Administration (FDA) by the end of the year.
Roche is also aiming to enter the fast-growing weight-loss market, which is currently dominated by Eli Lilly (LLY.N) and Novo Nordisk (NOVOb.CO).
In March, CEO Thomas Schinecker told the media that he expects the Swiss company to become one of the top three players in the obesity treatment space.
However, investor sentiment was tempered in March after data on Roche’s obesity drug petrelintide failed to meet expectations. The company is developing the drug in collaboration with Denmark-based Zealand
Schinecker said on Thursday that he believed petrelintide can still compete with other amylin-based drugs in development by rivals due to its tolerability. It has shown fewer and less severe gastrointestinal side effects in early trials than Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, despite weight-loss effects being lower than hoped.
