Roche, the Swiss biotechnology company, demonstrates confidence that its sales and earnings in 2024 will align with company projections, driven primarily by advancements in treatments for sclerosis and eye-related ailments, along with robust performance in its diagnostic products. The company has reaffirmed its full-year outlook, indicating that group sales are expected to grow in the mid-single-digit range with core earnings per share (EPS) projected to escalate in the high-single-digit range.
This forecast is at constant exchange rates and indicates resilience against the adverse effects of the Swiss franc's appreciation, excluding the impact of tax disputes resolution in 2023. Furthermore, Roche has conveyed optimism regarding an increase in dividends expressed in francs. The underlying commitment from Roche comes amid a noteworthy 6% sales increase during the three-month period ending on September 30, maintaining consistency with the previous quarter's performance.
This surge, with third-quarter sales reaching 15.14 billion francs, not only eclipsed the sales from the same period last year (14.27 billion francs) but also surpassed the Visible Alpha-compiled consensus estimates of 14.85 billion francs. Over the first nine months of 2024, Roche reported a 2% increase in sales on a reported basis and 6% growth at constant exchange rates, amounting to a total of 44.98 billion francs.
This remarkable performance was fueled by substantial demand for Roche's novel medicines and diagnostic offerings, which successfully countered the anticipated decline in COVID-19-related sales as well as the challenges posed by erosion from biosimilars and generics. Focusing on the pharmaceutical segment, the sales of the multiple sclerosis medication Ocrevus rose by 9% to reach 5.06 billion francs, while Vabysmo, prescribed for eye illnesses, experienced a striking 79% surge, totaling 2.82 billion euros.
Overall, the pharmaceutical division's sales witnessed a 3% uptick in the first nine months, while the diagnostics sector remained stable with flat sales. Roche's impressive growth momentum is further evidenced by its pharmaceuticals division securing five pivotal regulatory approvals, three positive phase III read-outs, alongside two strategic acquisitions aimed at bolstering its oncology and ophthalmology product pipelines, as noted by Chief Executive Officer Thomas Schinecker. On another note, investment insights from Barclays, shared on Wednesday, referred to Roche's third-quarter results as 'decent'.
The firm expressed expectations that Roche will concentrate on its upcoming fourth-quarter 2024 results and full-year 2025 outlook during an upcoming call with investors. Barclays anticipates that a key topic during this discussion will be the implications of [Amgen's] forthcoming at-risk launch of bEylea on Vabysmo within the US market. At midmorning trading, Roche shares remained unchanged, with a price of $272.60, reflecting a modest change of $+0.40 and a percent increase of +0.15%..