Company Analysis - Hoffmann-La Roche
Impressive Sales
With 2006 sales of CHF4.84bn, rituximab (MabThera) was co-developed with Genentech and has become Roche's top-selling product as well as marking a significant step forward as a first-in-class treatment for lymphoma. Rituximab is a monoclonal antibody and as such is highly specific to its target CD20, found on the surface of B-cells including the abnormal B-cells present in many types of non-Hodgkin's lymphoma (NHL). It induces destruction of B-cells whilst sparing lymphoid stem cells, which lack the CD20 antigen, therefore allowing the production of healthy B-cells following treatment. The destruction of these cells was a significant side-effect seen with traditional chemotherapy which severely impaired the immune system. Rituximab has now been approved in a number of lymphoma settings, including first-line treatment of both indolent and aggressive NHL, for which it is approved in Europe and the US. In 2006, it was additionally approved in the EU, Switzerland and the US as a first-in-class treatment for rheumatoid arthritis in patients for whom anti-TNF treatments have failed. The novelty of rituximab exemplifies the overall strategy of Roche - focusing on innovative ways to treat diseases insufficiently provided for by existing therapies, thus accessing the high-value end of the market.
A further huge asset for Roche comes in the form of trastuzumab (Herceptin), for which Roche acquired exclusive marketing rights outside the US, bringing in CHF3.93bn in 2006 alone. Another monoclonal antibody originated at Genentech, trastuzumab acts against HER2, a receptor tyrosine kinase present in 25% of breast cancers. Similarly to rituximab, it has had a huge impact since its introduction in 1998. In Phase III trials.
in early-stage HER2+ breast cancer, trastuzumab combined with current chemotherapy produced a 52% reduction in risk of disease recurrence, and a 69% overall increase in survival at 4 year follow-up, compared to chemotherapy alone. It is also in Phase II and III trials for non-small cell lung cancer and gastrointestinal cancer respectively, which will significantly contribute to further revenues if Roche and Genentech can secure approval in these indications.
The third of Genentech/Roche's major antibody-based therapeutics is bevacizumab (Avastin), an anti-VEGF antibody which is the first antiangiogenic to produce survival benefits in cancers such as advanced colorectal, breast, lung and kidney cancer. This product brought in sales of CHF2.96bn in 2006 and together with MabThera and Herceptin demonstrates the burgeoning potential of these highly specific biotherapeutics, both for the dramatic results they have in patients and the financial boost they give to any company which can develop them.
