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Roche Third-Quarter Sales Rise 20 Percent

Posted on: Wednesday, 19 October 2005, 06:00 CDT

BASEL, Switzerland - Roche Holding AG's third-quarter sales rose 20 percent on demand for cancer drugs and Tamiflu, an antiviral being stockpiled by governments and individuals as a defense against a possible flu pandemic.

Sales rose to 8.82 billion Swiss francs ($6.79 billion) in the three months ending Sept. 30, from 7.37 billion francs in the third quarter of 2004, the company said.

The Swiss pharmaceutical giant, which is under growing international pressure to ease its control on the manufacture of Tamiflu, issues earnings figures only for the half year and full year.

While cancer drugs were the biggest contributor to growth in the quarter, Tamiflu sales more than doubled to 279 million francs ($215 million) from 110 million francs.

In the face of fears that the virus causing the current outbreak of bird flu could mutate into a virulent human influenza strain, Tamiflu is seen as the most effective medical defense until an effective vaccine becomes available.

Roche said Tuesday that it will build a U.S. plant to make more Tamiflu, but demand for the drug is outstripping the company's ability to make it. Some 40 countries are scrambling to create stockpiles to treat millions if a pandemic occurs, and there's growing international pressure to ignore Roche's patent rights and manufacturer inexpensive generic versions.

Until Tuesday, Roche had insisted it would not allow anyone else to make Tamiflu as sales of the once-obscure drug's sales have skyrocketed from $76 million in 2001 to an estimated $700 million this year.

Sales of Roche's cancer drug Mabthera rose to 1.06 billion francs ($816 million) from 877 million francs in the same period of 2004, while Avastin sales more than doubled to 486 million francs ($374 million) from 235 million francs. Sales of breast-cancer drug Herceptin rose to 591 million francs ($455 million) from 373 million francs.

"Our pharmaceuticals division gained additional market share, with all major products contributing to this strong performance, particularly our new cancer medicines," said Chief Executive Franz Humer.

Overall sales of prescription drugs increased 24 percent to 6.78 billion francs ($5.22 billion), Roche said.

Sales at Roche's diagnostics division rose 8.5 percent to 2.04 billion francs ($1.57 billion) from 1.88 billion francs, the company said.

Roche shares were off 0.1 percent at 192.50 francs ($148.24) in midmorning trading on the Zurich exchange.

Source: Associated Press/AP Online

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