Roche (ROG) Jefferies London Healthcare 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 up 7% excluding COVID-19 and Ronapreve impacts.

• Key growth drivers include rapid uptake of new launches such as Vabysmo, Susvimo, and Xolair, with no biosimilar launches expected in 2025.

• Young portfolio, defined as launches since 2015, now accounts for 56% of Pharma sales, with recent 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 mid-single digit sales growth, with further dividend increases planned.

Strategic focus and pipeline development

• New Pharma strategy prioritizes Neurology, Ophthalmology, CVRM, Oncology/Hematology, and Immunology, aiming to deliver 20 transformative medicines by 2030.

• Focus areas selected based on societal burden, unmet need, and internal strengths, covering ~60% of global disease burden and ~80% of potential growth.

• R&D ambitions include a 50% increase in Phase I initiations, 50% higher average peak sales per asset, and a 22% increase in Phase III success rate by 2030.

• 2024 saw meaningful R&D improvements, with resource reallocation, 5 new partnership assets, and 8 early R&D assets added.

• Pipeline refined since 2023, with 17 NMEs added and 26 removed, focusing on higher-impact projects and accelerating through partnerships and acquisitions.

Innovation, digitalization, and outlook

• Key deals with companies like Carmot, Alnylam, and Telavant complement the pipeline in obesity, hypertension, and inflammatory diseases.

• AI and digitalization initiatives are increasing productivity, reducing regulatory timelines by 50%, and improving manufacturing yields and commercial effectiveness.

• Several pipeline assets have peak sales potential above CHF 3bn, with significant regulatory and clinical milestones expected in 2025.

• Upcoming events include Digitalization Day and multiple data readouts in neurology, oncology, and metabolic diseases.

• Commitment to reinvesting R&D savings into high-return activities while maintaining flat overall spend in the short term.