Roche is forecasting a more positive growth trajectory as it reduces its estimate for the impact of biosimilar competition. The company anticipates launching a blockbuster cancer pill by the end of the year and projects its new cancer and obesity drugs could generate $9 billion in peak annual sales.
This updated outlook comes despite some recent challenges. First-quarter sales saw a 5% decline when reported in Swiss francs, though they grew 6% at constant exchange rates. The strong Swiss franc has significantly impacted reported results. Furthermore, sales of its ophthalmology treatment showed disappointing growth, increasing only 7% last quarter amid a slowdown in the US.
Despite these currency headwinds and a cautious forecast earlier in the year that saw shares fall, Roche's pharmaceuticals division still recorded a 7% sales increase at constant exchange rates to CHF 11.5 billion in the first three months of the year, driven by strong growth in medicines for severe diseases. The diagnostics division also saw sales climb 3%.
For the full year 2026, Roche expects Group sales to increase in the mid-single-digit range at constant exchange rates, with core earnings per share targeted to grow in the high-single-digit range. The company also anticipates a further increase in its dividend in Swiss francs. This more optimistic view regarding generic impact suggests confidence in their new product pipeline to drive future growth.
