Roche Shares Drop 2.8% as Vabysmo and Hemlibra Sales Miss Expectations Despite Revenue Growth
核心洞察
Roche's shares fell 2.8% after third-quarter sales of eye disease (搜索) drug Vabysmo reached 996 million Swiss francs, missing analyst expectations for the second consecutive quarter.
The Swiss drugmaker's newer treatments Vabysmo and Hemlibra disappointed investors, while older drugs Rituxan and Actemra offset the shortfalls in performance.
Despite revenue challenges, Roche raised its adjusted earnings growth forecast to high-single to low-double-digit and advanced an obesity (搜索) drug candidate to late-stage trials.
Swiss pharmaceutical giant Roche experienced a 2.8% share decline on Thursday following disappointing third-quarter sales performance from its newer treatments, despite meeting overall revenue expectations for the nine-month period. The company's stock drop reflects investor concerns about its reliance on older blockbuster drugs to compensate for underperforming newer therapies.
Key Financial Performance Metrics
Roche's group revenue rose 2% on a constant currency basis to 45.9 billion Swiss francs ($57.9 billion) in the first nine months of the year, falling just short of analysts' forecasts of 46.2-46.4 billion francs. The pharmaceutical division generated third-quarter sales of 11.57 billion Swiss francs ($14.59 billion), compared to analyst expectations of 11.84 billion francs.
The most closely watched disappointment came from Vabysmo, Roche's treatment for a common form of blindness (搜索) in the elderly. Third-quarter sales reached 996 million Swiss francs ($1.26 billion), missing analyst expectations for the second consecutive quarter. The drug's overseas sales were particularly impacted by a weaker dollar.
Portfolio Performance Challenges
Christoph Wirtz, portfolio manager at Rothschild & Co Wealth Management, characterized the results as "lower quality growth that you normally wouldn't want to see." The analysis highlighted how older cancer (搜索) drug Rituxan and anti-inflammatory Actemra offset shortfalls from newer treatments including haemophilia (搜索) injection Hemlibra and Vabysmo.
"The drugs that have lost exclusivity are still kind of performing so well," Wirtz noted, pointing to the concerning trend of dependence on legacy products rather than newer innovations driving growth.
Strategic Focus on Obesity Market
Despite the quarterly challenges, Roche raised its adjusted earnings growth forecast to high-single to low-double-digit, supported by cost controls and efforts to mitigate short-term U.S. tariff impacts. The company maintained its mid-single-digit sales growth forecast while advancing strategic investments in the obesity (搜索) treatment sector.
CEO Thomas Schinecker emphasized the significant opportunity in the weight loss market during a media call, stating, "I don't think that we are overestimating the market, we are only scratching the surface." The company advanced one obesity (搜索) drug candidate to a late-stage trial last month, positioning itself to compete in a market currently dominated by Novo Nordisk and Eli Lilly.
Regulatory and Pricing Initiatives
Addressing U.S. market pressures, Schinecker indicated that Roche was "in a pretty good spot" regarding potential tariff impacts, citing investments in U.S. manufacturing and ongoing technology transfers. The company has increased U.S. inventory levels as a safeguard against short-term disruptions.
In response to pricing pressures from the Trump administration, Roche's U.S. biotech unit Genentech announced plans to offer influenza antiviral pill Xofluza directly to consumers at a discounted cash price of $50 through partnerships with Alto Pharmacy and Mark Cuban Cost Plus Drug Company. This initiative aligns with broader industry efforts to reduce prescription drug costs for U.S. patients.
When asked about potential pricing agreements with the U.S. government, similar to deals struck by Pfizer and AstraZeneca, Schinecker remained diplomatic, stating, "I'm not going to comment at this stage on any potential agreement with the United States. What I can say is that we are always in good exchange with the government."