• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • Subscribe

Drug Delivery Business

  • Clinical Trials
  • Research & Development
  • Drug-Device Combinations
  • FDA
  • Pharmaceuticals
  • Policy

Roche’s prospects clouded by clinical flops

July 19, 2017 By Brad Perriello

Roche(Reuters) — A run of disappointing drug trials at Roche (OTC:RHHBY) has left analysts suggesting the view from its new 41-story office building in Basel has become more clouded, with little chance of management now upgrading its growth forecast next week, when it reports first-half earnings.

Moreover, the first of a threatened flood of biosimilar copies of Roche’s $22-billion-per-year trio of cancer drugs, Rituxan, Avastin and Herceptin, have now been approved in Europe and the U.S.

CEO Severin Schwan has long contended he can boost sales despite these new biosimilar launches, largely by developing new drugs to treat other diseases.

But Roche has just seen its new immunotherapy treatment Tecentriq fail a bladder cancer trial, even though a similar drug from rival Merck (NYSE:MRK) shone in a separate study.

That flop was closely followed by unimpressive data from Roche’s Aphinity study that showed combining Roche’s two breast cancer drugs, Herceptin and Perjeta, produced only a modest additional benefit.

As a result Kepler Cheuvreux analyst David Evans last month cut his forecast for peak adjuvant sales of Perjeta to $1.5 billion, from $3.5 billion previously.

“Apart from the underwhelming Aphinity data, Roche has had some other setbacks,” Evans wrote in a note to investors, citing the Tecentriq failure and the approvals of rival biosimilars – near copies of branded drugs derived from living organisms that cannot be exactly duplicated but show the same effectiveness.

“Their impact in the second half might limit Roche’s chances of upgrading 2017 guidance,” he said.

Roche now sees 2017 sales growth at a low- to mid-single-digit percentage, with core earnings per share growing in line with sales.

This year, the share price is up just 4.7%, half the gain of local rival Novartis (NYSE:NVS) and among the laggards in the Stoxx 600 Europe healthcare sector index, up 6.3%, despite some good news on Roche’s development pipeline.

The FDA’s March approval of Ocrevus, the first regulator-backed drug against primary progressive multiple sclerosis set the stage for Roche’s next blockbuster. And its investigational hemophilia drug emicizumab is seen topping $1.5 billion in sales by 2022 as it wrests business from rival Shire (NSDQ:SHPGY), Thomson Reuters data shows.

Another of Roche’s biosimilar-busting hopefuls, Alecensa, demonstrated better results than Pfizer (NYSE:PFE) drug Xalkori against lung cancer, paving the way for use in early treatment of the disease.

Roche also contends the Herceptin-Perjeta data is not as dire as some judge it and believes it still reinforces its case with regulators that the two medicines should be used together to keep breast cancer from returning.

“Our view is shared by many experts,” a Roche spokesman said.

Strategy test

Meanwhile, the threat of cheaper biosimilars displacing Roche’s existing big-selling medicines is becoming a reality, with knock-offs from Novartis, Celltrion and Mylan now coming on line.

Novartis’s Rituxan copy was approved in Europe last month; managers there said this week they expected biosimilars to steadily win over patients from the originals.

“It’s only two weeks in,” Novartis’s Sandoz generics unit head Richard Francis said, of Rituxan’s European launch. “But the reception we’re seeing from physicians and payers and key stakeholders is very positive.”

A Roche spokesman said the arrival of biosimilars is no surprise, but analysts remain concerned.

“Roche has $22 billion of revenues exposed to biosimilars,” Deutsche Bank analyst Tim Race wrote in an investors note. “The rapid pace of innovation, particularly in oncology, means we have a lower than historical level of visibility that Roche can maintain its market leadership.”

($1 = CHF0.9541)

Filed Under: Business/Financial News, Clinical Trials, Featured, Pharmaceuticals Tagged With: Roche

IN CASE YOU MISSED IT

  • Medtronic to separate Diabetes business unit
  • Tandem Diabetes Care wins CE mark for Mobi insulin pump with Control-IQ+ technology
  • Glooko adds chief strategy officer to chief medical officer’s title
  • Cordis launches 10,000-patient registry for drug-eluting balloon
  • Senseonics opens $50M public offering, $25M private placement with Abbott

Primary Sidebar

“ddb
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest news and trends happening now in drug delivery.

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.

Footer

Drug Delivery Business News Logo

MassDevice Medical NETWORK

MassDevice
DeviceTalks
Medical Tubing + Extrusion
Medical Design & Outsourcing
MedTech100 Index
Drug Discovery & Development
Pharmaceutical Processing World
Medical Design Sourcing
R&D World

DRUG DELIVERY BUSINESS NEWS

Subscribe to Drug Delivery’s E-Newsletter
Advertise with us
About
Contact us
Privacy
Listen to our Weekly Podcasts

Copyright © 2025 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Privacy Policy | RSS