Roche chief executive Severin Schwan said health authorities are holding back from ordering more coronavirus medicines and tests, despite a rise in cases, as sales of its Covid-19 drugs fell SFr1.12bn ($1bn) in the first nine months of the year.
The Swiss pharmaceutical company sells the antibody treatment Ronapreve and the anti-inflammatory Actemra, originally developed for arthritis, for Covid.
Revenue from Covid tests also fell, down 40 per cent year on year to SFr600,000 ($604,000).
Schwan said the drop in government orders was probably caused by fewer severe Covid cases, which meant healthcare systems were better able to cope.
“In spite of increasing incidence rates for Covid-19, we actually don’t see an increase in the demand for Covid-19 related products,” he said. “It has nothing to do with inventories . . . there is simply much smaller demand than we have seen in the previous year.”
Sales were also hit by competition from biosimilars — generic versions of biologic drugs — especially for older cancer medicines, reducing revenue by $1.5bn.
But Roche confirmed its full-year guidance, expecting stable sales or growth in the low single-digit percentages at constant exchange rates. It forecast core earnings per share will increase in the low- to mid-single-digit range and expects to increase its dividend.
In the first nine months of the year, total sales rose 2 per cent year on year at constant exchange rates, with growth driven by newer medicines to treat illnesses including the brain and nerve disease multiple sclerosis, the rare genetic condition spinal muscular atrophy and breast cancer.