Roche warns of slowdown in Covid-driven sales

Roche expects to see a “significant” fall in demand for Covid-19 tests this year, the Swiss pharamceuticals firm warned on Monday, denting group sales.

Roche said first-quarter revenues had risen by 10%, or by 11% at constant exchange rates, to CHF 16.4bn, slightly ahead of consensus.

Within that, pharmaceutical sales increased 6% to CHF 11.2bn, while diagnostics sales surged 24%, to CHF 5.3bn, boosted by strong demand for Covid tests. Sales of rapid antigen and PCR tests totalled CHF 1.9bn during the quarter, compared to CHF 1.2bn in the first three months of 2021.

However, Roche said a “significant decline in Covid-19-related testing” was likely as the pandemic slowed, and it now expects sales of Covid-19 medicines and diagnostics to decrease by CHF 2bn to around CHF 5bn for the full-year.

Overall, group sales are expected to be either flat or to grow in the low single digits in 2022, or in the high single digit range once the fall in demand for Covid-19 products is stripped out.

Last year Roche’s annual sales rose by 9%.

Chief executive Severin Schwan said: “As expected, we started the year with strong demand for our diagnostics base business, our broad portfolio of Covid-19 tests and our new medicines. I am particularly pleased about the progress we are making in developing our product pipeline.

“Based on our current assessment of the development of the Covid-19 pandemic, we confirm the outlook for the full year.”

As at 1300 BST, shares in Roche were down 2%.