Company Analysis - Hoffmann-La Roche
Financial Basis for inventive R&D
Whilst the diagnostics division is a vital part of the business strategy Roche is
working towards, it is not the company's main financial driver.
Diagnostics
brought in a healthy 8.7 billion Swiss Francs (CHF) in sales in 2006, representing
20.7% of its total revenue, with pharmaceutical sales reaching CHF33.3bn - 21%
more than in 2005 - as well as being an increase of more than three times the
market growth rate. This positive trend looks set to continue with half-year
results for 2007 already showing an 18% increase in pharmaceutical sales. The
platform of a strong and highly-profitable portfolio of launched products is of
course an essential part of any pharmaceutical company in order to maintain its
research output to provide the next generation of human therapeutics.
Roche's research and development focuses on five disease areas; oncology, CNS disorders, metabolic/ vascular diseases, inflammatory and viral diseases (Graph 2). In 2006, oncology products constituted 46% of overall pharmaceutical sales for Roche, and half year results for 2007 showed a 22% growth in oncology sales.
