Roche has set its sights on high single-digit growth in adjusted earnings per share (EPS) for 2025, attributing its optimistic outlook to cost reductions and strong sales from key drugs, including the eye treatment Vabysmo and breast cancer drug Phesgo. The Swiss pharmaceutical giant reported a 7% increase in adjusted EPS for 2024, excluding currency fluctuations, underscoring its continued earnings momentum.
The company’s latest guidance, which analysts at Vontobel described as conservative but expected, suggests Roche is maintaining a cautious stance despite strong underlying performance. Adjusted total operating profit for 2024 stood at 20.8 billion Swiss francs ($23 billion), slightly below market expectations of around 21 billion francs.
Roche’s key growth drivers include Vabysmo, which targets age-related macular degeneration and posted a 68% rise in sales, reaching 3.86 billion francs. The treatment is proving competitive against Bayer and Regeneron’s Eylea. Meanwhile, Phesgo, a subcutaneous combination therapy that offers a more convenient alternative to Roche’s established breast cancer drug Perjeta, exceeded expectations with a 62% revenue surge to 1.74 billion francs.
CEO Thomas Schinecker has been actively restructuring Roche’s portfolio, acquiring new drug technologies to counter declining sales in the oncology segment. Alongside these strategic investments, he has implemented cost-cutting measures and expedited drug launches to bolster the company’s pipeline.
Schinecker also addressed potential trade concerns, stating that Roche’s major production facilities in the United States strategically position the company to navigate any potential tariffs imposed under President Donald Trump’s administration.
With a strong pipeline and a focus on operational efficiencies, Roche is positioning itself for sustained profitability and continued market leadership in the pharmaceutical and diagnostics industries.
