Roche (ROG) BNPP Exane CEO Conference presentation summary

Financial performance and outlook

• Mid single digit sales growth expected for FY2024, with strong base business growth and no material COVID-19 impact anticipated going forward.

• Group sales and core EPS growth are projected to be broadly in line, excluding the impact from resolution of tax disputes in 2023.

• Currency impact is improving, with exchange rates expected to have a less negative effect on sales and profit as 2024 progresses.

• Diagnostics division has achieved a 7% CAGR at constant exchange rates from 2019–2023, with margin improvements due to operational changes.

• Dividend is expected to further increase in Swiss francs.

Pharma division highlights

• Leading positions in neurology, hemophilia, ophthalmology, and oncology, with a diversified portfolio mitigating biosimilar erosion.

• Young portfolio is set to drive near- to mid-term growth, with two NME approvals expected in 2024: PiaSky (crovalimab) and inavolisib.

• Key growth drivers beyond 2025 include multiple late-stage assets in oncology, neurology, immunology, and cardiovascular/metabolism.

• Portfolio shaping continues, with 20% of NMEs terminated since Q2 2023 to focus on high-impact projects.

• Ambitious R&D goals for 2030 include increasing project initiations and success rates, reducing costs and cycle times, and aiming for 80% first-in-class or best-in-disease pipeline molecules.

Diagnostics division highlights

• Diagnostics is the industry leader, with high single-digit growth and 14 FDA Breakthrough Device Designations since 2018.

• Over 50% of FDA-approved innovative solutions in the last five years, with 2024 set to be the biggest launch year.

• Integration of FMI and Diabetes Care is driving synergies and leveraging next-generation sequencing capabilities.

• Important launches from 2024 onwards include mass spectrometry, continuous glucose monitoring, and next-generation sequencing platforms.

• Menu expansion and digital tools are supporting personalized disease management and growth.