Cancer Drug Sales Rising For Roche
The pharmaceutical company Roche Holding AG has produced a number of new cancer drugs and treatments that are expected to increase profits this year. The company has predicted that sales will continue to rise and revenue will increase as high as the mid-single digit percentages.
The company’s net income last year increased significantly (as high as 18%), at $12.7 billion. The company’s rising sales are due to a host of new drug products, including drugs for leukemia and breast cancer, and they continue to research new drugs for development. Market analysts have called Roche a good buy for investors, with the stock price likely to continue its ascent.
Andrew Weiss, an analyst for Bank Vontobel, is one of the analysts making the “buy” recommendation. “That’s a lot of money. Here you see the power of the business model. Roche is less exposed to patent expirations than other drug companies and they have a rich cash flow and are able to funnel that into research.”
While Roche has done very well with cancer drugs and treatments, it has not had the same success with drugs that treat non-cancer diseases and illnesses. Their schizophrenia drug was reported as having issues in its clinical trials as recent as last week. However, the company is reported to have as many as 15 new drugs in the development process, which are expected to eventually cover the losses of non-cancer drugs when they eventually hit the market.
Roche CEO Severin Schwan stated that the company will continue its research and development projects in addition to looking toward possible acquisitions. “We will continue to invest in our business. We have announced that we intend to increase the dividend again for 2014. And then it will very much depend on what M&A opportunities are along the way. We will see how this develops.”
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