Even though Roche's pharmaceuticals business with prescription medicines continues to grow, the company suffered declining overall sales in the first half of 2023 due to the expected drop in demand for Covid-19 products. Roche Group sales fell eight percent to CHF 29.8 billion. The appreciation of the Swiss franc against most currencies had an additional negative impact on the results presented in francs. Net income for the first half of 2023 is approximately CHF 7.6 billion. Compared with CHF 9.2 billion in the prior-year period, this represents a decrease of 17 percent.
Thomas Schinecker, CEO of Roche-Group, about the results: “In the first half of 2023, sales in the base business of both our divisions grew strongly, largely offsetting the impact of declining demand for Covid-19 products. Vabysmo continues its strong momentum, now providing treatment for patients with severe eye conditions in over 70 countries. We reached several important pipeline milestones, including the US and EU approvals of our blood cancer medicine Columvi. I am also excited about our partnership with Alnylam to develop a potentially transformative medicine for patients living with hypertension, which affects 1.2 billion adults worldwide and is the leading cause of death from cardiovascular disease. We confirm our outlook for 2023.”
Sales of the Pharmaceuticals Division increase by one percent in the period from January to June 2023 due to sustained high demand for newer medicines, or by as much as eight percent after adjusting for currency effects. The prescription medicines business generated sales of CHF 22.7 billion. The strongest growth driver here is a new eye medicine. The top five growth drivers are medicines for eye diseases, multiple sclerosis, hemophilia, spinal muscular atrophy and breast cancer. They achieved total sales of CHF 7.5 billion, an increase of CHF 2.2 billion over the same period last year.
The Diagnostics Division's base business continued its good growth momentum with an increase of six percent, while total divisional sales declined 29 percent due to exceptionally high demand for Covid-19 tests in the first half of last year. The Diagnostics business recorded sales of CHF 7.1 billion. The main contributors to growth were immunodiagnostics, particularly cardiac tests, and clinical chemistry diagnostic solutions.
Due to the strong sales decline of Covid-19 products of around CHF five billion, Roche expects a low single-digit decline in Group sales in constant currencies. Excluding these Covid-19 sales, the company expects solid sales growth in the base business of both divisions.
