Roche

Areas of activity

Roche is one of the world's leading companies in the field of pharmaceuticals and diagnostics, being a major manufacturer of biotechnological drugs for the treatment of oncological, ophthalmic and autoimmune diseases, severe viral infections and disorders of the central nervous system.

In 2017, Roche is a leader in the field of in vitro diagnostics and histological diagnostics of cancer, as well as a pioneer in the field of self-control of diabetes mellitus. The combination of pharmaceutical and diagnostic divisions allows Roche to work in the field of personalized medicine - a strategy aimed at developing effective medical solutions for patients, taking into account the individual characteristics of each.

The company produces diagnostic products and innovative drugs for the prevention, diagnosis and treatment of serious diseases.

For 2017, 29 Roche drugs, including vital antibiotics, antimalarial and antitumor drugs, are included in the WHO List of Essential Medicines.

For eight years in a row, Roche has been recognized as a leader in pharmaceuticals, biotechnology and life sciences in terms of Dow Jones sustainability.

Aktivs

For 2019, the Swiss Roche group of companies (Roche) has representative offices in 150 countries and more than 85,000 employees.

Its headquarters are located in Basel, Switzerland. The company's investment in research and development is CHF 9.9 billion and sales are CHF 50.6 billion.

As of 2018, Roche is wholly owned by Genentech, USA, and a controlling stake in Chugai Pharmaceutical, Japan.

Roche Diagnostics

Roche Diagnostics is a division of Roche that manufactures medical diagnostic equipment and research reagents.

Performance indicators

2024:46% of revenues are in the United States

As of November 2024

2023: On the list of companies with the largest R&D costs

The chart shows 12 months of data as of April 2023.
For Amazon shows the costs of technology and content (not R&D).
ByteDance statistics date back to 2021 (according to the Wall Street Journal)

2021: 5th in the world in terms of prescription drug sales: $49.3 billion

Data for 2021

2020

Global Pharmaceutical Market Share - 5.3%

Roche's share in the global pharmaceutical market was 5.3%. Read more here.

Global Cancer Drug Market Share - 16.2%

Roche's share of the global cancer drug market was 16.2% (Evaluate data). Read more here.

2018: Sales growth of 7% to CHF 56.8 billion

On January 31, 2019, Roche, an international pharmaceutical giant, reported that sales increased by 7% in 2018 (at constant exchange rates) to 56.8 billion Swiss francs, compared to 53.3 billion francs in 2017.

Operating income from core operations rose 9%.

Sales of the pharmaceutical division increased by 7% to 44 billion francs, compared to 41 billion francs in 2017. The main growth drivers were the multiple sclerosis drug Ocrevus, the antitumor drugs Perjeta, Tecentriq and Alecensa, as well as the hemophilia drug Hemlibra.

During the first year, Ocrevus sold 2.4 billion francs on the market.

The company has been and remains quite flexible in the field of pricing over the past few years - whether it is the situation with the presence of local and international biosimilars or the situation with new and rare drugs. Our response to increasing competition from biosimilars is to accelerate the introduction of increasingly knowledge-intensive products at pharmacoeconomically sound prices. In particular, we plan to strengthen close work with the heads of Russian ministries and services to ensure both fair access to the drug supply system in Russia, on the one hand, and fair pricing, on the other, so that drugs are available to more regions, PLs and patients. Prices in the EMEA markets are balanced and therefore the reference pricing system is unlikely to lead to sharp jumps or failures.

In the United States, sales grew 14% thanks to Ocrevus, Perjeta and Lucentis.

In Europe, sales decreased by 7% due to the withdrawal of MabThera/Rituxan biosimilars (-47%) and Herceptin (-16%) to European markets. The losses from biosimilar competition are partially offset by successful spones of Ocrevus, Tecentriq and Alecensa, as well as Perjeta for the treatment of metastatic HER2-positive breast cancer and adjuvant therapy.

In other countries, sales increased by 10% due to the growth in indicators in the Asia-Pacific region and Latin America.

At the same time, in Japan, the volume of sales decreased by 1% against the background of the decline in prices initiated by the government of the country and the appearance on the market of biosimilars of MabThera/Rituxan (-36%) and Herceptin (-16%).

In 2018, sales of the diagnostic division increased by 7% to 12.9 billion francs, compared to 12.1 billion francs a year earlier.

According to Roche's forecast, in 2019 sales growth will fluctuate within low and medium single-digit indicators with constant exchange rates. Earnings per share growth is expected to be broadly in line with sales growth. An increase in dividends^[1] national currency is also expected^[2]

Business in Russia

Main article: Roche in Russia

Before the 1917 revolution, Russia accounted for 25% of the company's turnover. After the stage of cooperation with the USSR, in 1991 Roche opened a representative office in new Russia.

History

2024: Employee cuts

On February 9, 2024, the Swiss pharmaceutical company Roche announced a reorganization, during which it plans to reduce the number of personnel. This is necessary to improve financial performance and optimize operations in a difficult macroeconomic situation.

It says only product development groups will be affected by the layoffs. The global workforce of Roche's respective units as of early 2024 is approximately 5,800, of which about 1,800 are in Switzerland. In accordance with the restructuring program, about 6% of such jobs will be abolished: that is, approximately 345 employees will fall under the reduction. Of these, about 100 specialists can be dismissed in the Swiss unit.

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Roche

In general, by the date under consideration, Roche employs approximately 101 thousand people around the world, of which 14,200 are in Switzerland. The decision to cut jobs came after a deterioration in performance.

The success and sustainable growth of our company depend on the ability to identify promising areas in advance, adapt to market changes and effectively use available resources. We expect Roche's total headcount to remain stable in 2024, the company said in a statement.

Staff reduction is part of a strategy aimed at developing the most promising drugs and treatments. Roche aims to optimize its R&D and reduce costs. The company is introducing artificial intelligence technologies. In particular, an agreement was concluded with PathAI to develop AI algorithms for detecting pathologies.^[3]

2023: $7 billion Telavant purchase

On July 13, 2023, it became known that the biotechnology company Roivant Sciences entered into an agreement to sell Roche an experimental drug to the pharmaceutical corporation for the treatment of inflammatory bowel diseases, including ulcerative colitis and Crohn's disease. The transaction amount is approximately $7 billion. More. here

2021

Softbank bought a stake in Roche for $5 billion

In early August 2021, it became known that the Japanese corporation Softbank bought a stake in Roche for $5 billion. We are talking about a package of non-voting shares, while the size of the share is not disclosed.

According to the Financial Times (FT), former Deutsche Bank trader Akshay Naheta, who is the head of SB Northstar, SoftBank's asset management subsidiary, is behind the acquisition of a stake in Roche. It was created in 2020, funded in part personally by Masayoshi Son, founder and principal owner of SoftBank.

The decision to acquire a stake in Roche differs from SB Northstar's previous investments, which were directed to technology and biotechnology companies, the newspaper notes. One of his sources said the deal was an attempt by Naheta to diversify the company's portfolio.

Softbank acquires stake in Roche for $5 billion

The FT publication notes that the deal with Roche came just months after Masayoshi Son announced a reduction in SB Northstar's investment portfolio due to losses of $5.6 billion since its inception in July 2020.

Bloomberg A major driver for Roche investing was SoftBank's confidence that Roche's subsidiary Genentech was grossly undervalued, the sources said. In addition, thanks to a number of recent acquisitions, including Flatiron Health , Foundation Medicine Roche has strengthened its infrastructure for personalized medicine, as it can now use a combination of data, diagnostics and analytics to develop new drugs for, the cancer publication said.

Amid news of Roche investing, SoftBank shares fell 1.1% in value. Roche securities from January 1 to January 4, 2021 rose in price by 18%.

The pharmaceutical group of companies is controlled by the Hoffmann-La Roche family, which owns a 50.1% stake. The rival company Novartis owns roughly a third of Roche.^[4]

Marital recognition on the mySugr Bolus Calculator diabetic app

In early April 2021, Roche acknowledged the marriage on the diabetic app, the ySugr Bolus Calculator, as this calculator recommended patients be given the wrong dose of insulin. The company said that the problem concerns applications versions 3.71.0, 3.72.0, 3.73.0 and 3.74.0, that is, all versions released since August 23, 2020. Read more here.

Purchase of coronavirus test developer GenMark Diagnostics for $1.8 billion

In mid-March 2021, Roche acquired the American company GenMark Diagnostics for $1.8 billion. With the new acquisition, Roche is trying to infiltrate the field of infectious disease diagnostics to challenge its competitors, such as French company bioMerieux. Read more here.

2020

Create a consortium to organize material delivery processes

SAP SE, Roche Tenthpin and announced a collaboration in which they will create a supply chains medical product management system. The companies have joined together in an industry consortium and are working together on an innovative solution. This was announced on November 2, 2020 by the company. SAP CIS More. here

Roche's purchase of genome sequencing technology developer Stratos Genomics

In mid-May 2020, Roche acquired Stratos Genomics to further develop DNA-based sequencing technologies for diagnostic use. Read more here.

2018

Roche raises stake in Foundation Medicine to 100% for $2.4 billion

On June 19, 2018, Roche, which has long been developing a drug to treat cancer, reported an increase to 100% of its stake in Foundation Medicine. For $2.4 billion, 44% of the shares were bought, as a result of which the developer of gene diagnostics of cancer cells was valued at $5.3 billion. That's 29% more than the company's value the day before the Roche deal was announced. Read more here.

Purchase of MS regenerative therapy program from Inception Sciences

On April 5, 2018, it became known that the Swiss pharmaceutical company Roche (Roche) entered into an agreement on the acquisition of the MS regenerative therapy program Inception 5 from the drug development platform Inception Sciences. The financial terms of the transaction were not disclosed, as well as the specific goals that are supposed to be achieved with the Initiative 5 program.

Roche buys a regenerative therapy program for multiple sclerosis from Inception Sciences. Photo: pharma.net.ua

Over the past 4 years, Inception and Roche have worked closely together in an alliance whose main objectives were to find and develop small molecules that promote remyelination of nerve fibers whose myelin sheath was destroyed due to progressive MS. There is no information about the discoveries that may have been made by partners in the course of joint work. However, Roche considered it appropriate to acquire the above program.

For its part, Versant Ventures announced that the funds received from Roche will be invested in the creation of Pipeline Therapeutics. It is assumed that the newly created company will be led by a team of specialists who worked with Roche. Pipeline will create an expanded platform for finding next-generation neuroregenerative drugs.

Meanwhile, Roche has vast experience in the MS treatment segment. In 2017, the U.S. Drug and Food Administration (FDA) approved Ocrevus (ocrelizumab), a drug manufactured by Roche for the treatment of the primary progressive form of MS, which, as of April 2018, is so far the only approved drug that changes the course of the disease.^[5]

Flatiron purchase for $1.9 billion

In mid-February 2018, Roche Holding announced the purchase of cancer analysis software developer Flatiron Health for $1.9 billion to accelerate drug development for cancer. Read more here.

2017

Acquisition of Ignyta

As it became known at the end of December 2017, the Swiss pharmaceutical company Roche buys the American company Ignyta Inc, specializing in the identification and treatment of patients with cancers carrying specific rare mutations - the company reached a corresponding agreement on December 22. The transaction amount will be $1.7 billion. The acquisition is approved by the boards of both companies and is expected to be completed in the first half of 2018.^[6] Read more here.

1H: 5% sales growth

In the first half of 2017, sales of the Roche Group of Companies increased by 5% and reached CHF 26.3 billion. Earnings per share growth was 6% and outpaced sales growth, reflecting strong performance across the core business. Net income under IFRS increased by 2%.

In the Pharma division, sales rose 5% to CHF 20.5 billion. Sales of the recently launched drugs Tecentrik, Ocrevus and Alecenza brought in 0.5 billion Swiss francs, which accounted for half of the division's sales growth. Continues to show strong growth in Periet sales. This growth was partially offset by lower sales of Tartseva, Tamiflu and Pegasis. In the United States, sales increased by 8%, the best performance in the drugs Tecentrik, Xolair, Mabter and Ocrevus, which recently began to be used for the treatment of recurrent and primary progressive forms of multiple sclerosis. In Europe, sales remained steady. The growth in sales of Perieta and Aktemra was compensated by a decrease in the level of sales of Avastin. In the "rest of the countries" region, sales grew by 5%, the leaders were Latin America and the Asia-Pacific region. In Japan, sales remained steady. The growth of Alecenza (+ 42%) was partially offset by a decrease in Avastin sales (-3%) due to the negative impact of the two-year price reduction decided by the government in April 2016.

Sales of the Diagnostics division grew by 5% to CHF 5.8 billion. The main contribution was made by the direction "Centralized and by the place of treatment of the study" (+ 8%) with the leading role of the immunodiagnosis business (+ 13%). In regional terms, growth was provided, in particular, by the Asia-Pacific region (+ 13%), where strong growth continued China (+ 20%). Sales growth was 3% EMEA in the region, 8% in Latin America, 1% North America in and 2% in Japan.

Production profit rose 3% in the Pharma division and 5% in Diagnostics. The growth rate in both divisions was affected by the 2016 base effect associated with changes in the Group's pension plans in Switzerland, partially offset by proceeds from the disposal of old drugs in the first half of 2017.

Net income per share due to core activities increased by 6%, and net income under IFRS - by 2%. IFRS net income was affected by impairment of intangible assets. It increased by 0.7 billion shv. Fr. after taxes, in particular from the partial impairment of the intangible asset Esbriet.

Buying MySugr to Expand Your Digital Business

On June 30, 2017, the Swiss pharmaceutical company Roche announced the purchase of MySugr to expand its digital business. The value of the transaction was not disclosed. Read more here.

2016: IT team cut by 350

The company's representative offices in more than 100 countries around the world, according to 2016, employed more than 94,000 people.

On July 2, 2016, the Swiss drug manufacturer Roche announced that it would reduce the staff of IT specialists. A company representative told Reuters about this.

In total, it is planned to lay off about 350 employees employed in the field by the information technology end of 2017. Roughly 100 job positions will be eliminated in and the Switzerland same number in the United States. The rest of the restructuring program will be distributed to a number of other countries - mainly European.

Roche fires IT professionals

At the same time, Roche is going to add about 300 new positions to the state, which will appear in the company's offices in Madrid, Kuala Lumpur and some others. What positions are in question is not specified. A Roche spokesman noted that further plans for personnel restructuring would be announced at a later date.

Experts suggest that Roche is optimizing its workforce due to the loss of revenue from aging drugs, including the anti-cancer drugs Avastin, Herceptin and Rituxan^[7]

2015: Closure of 4 US and European industries

In 2015, Roche announced the abolition of four production sites in the United States and Europe, resulting in the dismissal of approximately 1,200 employees. Those measures were part of a restructuring of the synthetic manufacturing business. The personnel purge announced then was supposed to begin in 2016 and end in 2021.

As of the end of 2015, Roche's staff number is about 91 thousand people working in more than 100 countries of the world.

2013: Investment in scientific research CHF 8.7 billion

Investments in research and development totalled CHF 8.7 billion in 2013.

2010:6% staff reduction

In late 2010, Roche reported a 6% staff reduction. Most of the layoffs affected the pharmaceutical division, namely marketing and sales departments, as well as production personnel.

1914:700 employees

In 1914, the number of employees of F. Hoffmann-La Roche Ltd in various countries exceeded 700 people. Gradually, Roche became a company producing a wide variety of products. In particular, it includes divisions of pharmaceuticals, vitamins, thin chemicals, diagnostic equipment, which represent a full range of means for prevention, diagnosis and therapy.

The emphasis placed on research work worked and led to a powerful breakthrough in the field of pharmaceuticals and universal recognition. In Basel (Switzerland), Nutley (USA ), Welwyn Garden City (England) and Kamakuru (Japan), four major research centers were organized to provide Roche with increasingly high quality products and technologies.

1897:50 employees

In 1897, about 50 people worked in Roche.

1896: Founding of F. Hoffmann-La Roche Ltd.

Fritz Hoffmann with his wife Adele La Roche

The company F. Hoffmann-La Roche Ltd, commonly known as Roche, was founded in 1896 in Basel (Switzerland) by Fritz Hoffmann, who, together with his wife Adele La Roche, gave the company a name.

At the very beginning of the company, Fritz Hoffmann organized a network of agents in other countries, such as Italy, France, Russia, Germany, England, the USA and Japan. In a short period, this allowed Roche to take a leading position in international health care.

Notes