Roche (ROG) Bernstein's 21st Pan European Annual Strategic Decisions Conference presentation summary

Financial performance and outlook

• Achieved high single-digit growth in both Pharma and Diagnostics divisions in Q2 2024, with no significant COVID-19 impact on results.

• Core operating profit increased by 11% year-over-year, driven by higher sales and effective cost management.

• Raised 2024 guidance to high single-digit Core EPS growth and mid single-digit sales growth, with a further dividend increase planned.

Portfolio and pipeline development

• Young portfolio, including Vabysmo and Phesgo, delivered strong growth; Polivy is on track for blockbuster status.

• US approval for PiaSky in PNH and upcoming PDUFA date for inavolisib in HR+ breast cancer highlight near-term pipeline momentum.

• 78 new molecular entities (NMEs) in clinical development, with 20 NMEs launched since 2015 and 20 FDA Breakthrough Therapy Designations since 2018.

• Portfolio shaping led to termination of 20% of NMEs since Q2 2023, focusing on high-impact projects.

Strategic initiatives and operational excellence

• Updated Group and Pharma strategies to be presented at Pharma Day 2024, with a focus on five priority therapeutic areas and digital health.

• Ongoing R&D excellence initiatives aim to increase Phase 0 initiations and Phase 3 success rates, while reducing costs and cycle times.

• Manufacturing network optimized through the sale of the Vacaville site and investments in new modalities like cell and gene therapy.