Roche proposes 33rd consecutive dividend increase after solid 2019
Roche Holding AG
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07:46 20/03/24
Roche reported a 9% improvement in group sales at constant currency in its 2019 results on Thursday to CHF 61.47bn (£48.45bn), and an 8% increase in Swiss francs, which it said was driven by new products, which “more than compensated” for the impact of competition from biosimilars.
The Swiss drugmaker said sales in the pharmaceuticals division were up 11%, resulting from high demand for recently-launched medicines, led by Ocrevus, Hemlibra, Tecentriq and Perjeta.
Its diagnostics division saw its sales grow 3%, which the board put down to its immunodiagnostics business.
Roche highlighted that a number of new treatments were approved in the fourth quarter of the year, noting that in the United States, a Tecentriq combination therapy for the initial treatment of a form of lung cancer got the FDA tick, as well as Xofluza for people at high risk of developing flu-related complications.
in the EU, Kadcyla treatment after surgery of HER2-positive early breast cancer was approved in the final three months of the year.
The company said core earnings per share grew ahead of sales at 13%.
On an IFRS basis, net income increased 32% to CHF 14.1bn, which was said to be due to strong underlying operating results, as well as the base effect of high goodwill impairments in 2018.
Roche’s board proposed an increase in the dividend to CHF 9, adding that subject to shareholder approval, it would be the 33rd consecutive dividend increase.
Looking at 2020, the company said sales were expected to grow in the low- to mid-single digit range, at constant exchange rates.
Core earnings per share were targeted to grow “broadly in line” with sales, at constant exchange rates, with Roche expecting to further increase its dividend in Swiss francs.
“In 2019, Roche achieved excellent operating results. I am delighted about the launches of our new cancer medicines Polivy and Rozlytrek, additional indications for Tecentriq and Kadcyla and priority review of risdiplam, our new medicine for a neurological disorder,” said chief executive officer Severin Schwan.
“Based on the progress made in rejuvenating our portfolio, Roche is very well positioned to grow going forward.
“For 2020 we expect sales growth in the low- to mid-single digit range in spite of the even greater impact of the competition from biosimilars.”