Roche Lowers Its Profit by 16% in the First Half of 2023

Roche has decreased its profit by 16% in the first half of 2023, reaching 7.14 billion Swiss francs (€7.48 billion), compared to 9.16 billion Swiss francs (€9.61 billion ) in the first half of 2022, according to the statement sent by the company to the National Securities Market Commission (Cnmv).

The Swiss pharmaceutical attributes this decrease to the drop in sales of products for Covid-19 and the application of various global restructuring plans launched in previous years.  

Roche had a decrease of 8% in its income in the first half of the year, up to 29,776 million Swiss francs (€31.24 billion). On the other hand, the pharmacy division grew 1%, to 22,681 million Swiss francs (€23.79 billion), while the diagnostic branch stood at 7.09 billion Swiss francs (€7.44 billion), 29% more compared to 2022.

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Roche highlights that the decrease in its profit is due to the drop in the sale of products against Covid-19

The Swiss pharmaceutical company highlights that the transformation of business processes to reduce the systems and complexity of these have led to employee costs of 39 million Swiss francs (€41 million). In reorganization expenses, 155 million Swiss francs (€162.51 million) were recorded.

Roche CEO Thomas Achnieker explains that ” the core business in our divisions (medicines and tests) grew strongly, largely eclipsing the dwindling demand for Covid-19-related products .”

Roche forecasts that for the remainder of the year, the drop in products for Covid-19 will be 5 billion Swiss francs (€5.2 billion ).  

Roche recently partnered with Alnylam for the development and commercialization of a treatment for hypertension in patients with high cardiovascular risk. The Swiss company makes an initial payment of $310 million and the US company will also receive development, regulatory and commercial milestones.

Roche is a multinational pharmaceutical company of Swiss origin, headquartered in Basel, specializing in the research and development of medicines and diagnostic products. The company was established in 1896 by its founder Fritz Hoffmann-La Roche. The pharmaceutical group is operationally present in more than one hundred countries.

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