Roche (ROG) Bernstein’s Premium Review Conference presentation summary

Financial performance and growth

• Achieved strong year-to-date growth in both Pharma and Diagnostics divisions, with base business in Diagnostics up 8% and Pharma portfolio showing robust sales evolution from 2022 to 2024.

• Key growth drivers include rapid uptake of new products such as Vabysmo, Susvimo, and Xolair, with significant milestones in Q3 2024 supporting future growth.

• Young portfolio, defined by launches since 2015, now accounts for 56% of Pharma sales, with recent US approvals for Itovebi and PiaSky.

• No patent cliff anticipated, with stable core operating profit margins and mid- to high-single digit sales growth expected.

• 2024 guidance raised to high single-digit Core EPS growth and further dividend increases in Swiss francs.

Strategic focus and portfolio management

• New Pharma strategy targets 20 transformative medicines in high-burden therapeutic areas: Neurology, Ophthalmology, Oncology/Hematology, Immunology, and CVRM.

• Focus areas address about 60% of global disease burden and 80% of potential growth, prioritizing unmet needs and Roche's scientific strengths.

• Portfolio management enhanced by a unified framework, ambitious R&D objectives, and a 'Bar' for transformative asset selection.

• Fast-tracking selected programs in IBD, Alzheimer's, and obesity, with resource reallocation to accelerate high-potential assets.

• R&D ambitions for 2030 include a 50% increase in Phase 0 initiations and average peak sales, a 22% higher Phase III success rate, and a 40% reduction in development cycle time.

Pipeline development and business development

• 2024 saw 17 new molecular entities (NMEs) added and 26 removed, resulting in a higher-impact pipeline.

• Key partnerships and acquisitions in 2024 expanded the pipeline across all focus therapeutic areas, including deals with Alnylam, Carmot, and Telavant.

• At least seven NMEs have CHF >3bn peak sales potential, with several marketed products having significant line extension opportunities.

• Significant regulatory and clinical milestones expected in 2025, including approvals and pivotal trial readouts for major assets.