Roche Holding Ltd · SIX:RO
Roche — J.P. Morgan 41st Annual Healthcare Conference 2023
35 slides from Roche's conference presentation, Jan 10, 2023
Slide 1: Roche
Slide 2: Forward-looking statements
This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘believes’, ‘expects’, ‘anticipates’, ‘projects’, ‘intends’, ‘should’, ‘seeks’, ‘estimates’, ‘future’ or similar expressions or by discussion of, among other things, str
Slide 3: Growing through Innovation
Growing through Innovation Alan Hippe | CFO Roche J.P.Morgan Healthcare Conference, 10 January 2023
Slide 4: Innovation strategy
Innovation strategy Pharma rejuvenation & positioning Diagnostics upcoming opportunities Outlook
Slide 5: OneRoche: Our Ambitions
OneRoche: Our Ambitions Keep innovating and increasing patient access Pharmaceuticals: Diagnostics: • Double medical advances at less costs to • Double patient access to novel, high society by 2030 medical value diagnostics solutions by 2030 • Double patient numbers in LMICs for our • ~2% of global
Slide 6: Reallocating significant resources to R&D and defending margins while managing an exceptional patent cliff
Reallocating significant resources to R&D and defending margins while managing an exceptional patent cliff Roche Group growth 2021 vs. 2018 6
Slide 7: Reallocating resources while securing margins and cash flow
Reallocating resources while securing margins and cash flow Operating expenses (OPEX) and Core OP 2018 - 2021 Operating free cash flow % of total OPEX CHFbn 70% 14.0 60% 12.0 53% 50% 50% 47% 47% 10.0 R&D spend 40% 8.0 R&D 42% 42% 39% 37% M&D 30% 6.0 G&A 20% 4.0 10% 2.0 11% 11% 11% 10% 0% 0.0 2018 20
Slide 8: BD focus on pipeline acceleration, Diagnostics and digital innovation
BD focus on pipeline acceleration, Diagnostics and digital innovation Development stage at time of deal/partnership start Pharma pipeline: Early stage assets Late stage assets Diagnostics, PHC & digital innovation (NLRP3 inhibitors) (HBV) (molecular information) (electronic health records) (SRP-9001
Slide 9: Pharma rejuvenation & positioning
Innovation strategy Pharma rejuvenation & positioning Diagnostics upcoming opportunities Outlook
Slide 10: Pharma portfolio rejuvenation on-going
Pharma portfolio rejuvenation on-going Medicines launched since the end of 2015 account for 42% of sales * CHFm % of Pharma sales 16,000 42% 14,000 34% 12,000 10,000 23% 8,000 15% 6,000 4,000 2,000 0 YTD Sep 2019 YTD Sep 2020 YTD Sep 2021 YTD Sep 2022 Cotellic Alecensa Tecentriq Ocrevus Hemlibra Xof
Slide 11: Currently 16 blockbusters on market, compared to 8 in 2015
Currently 16 blockbusters on market, compared to 8 in 2015 YTD Sep 2022 absolute growth of products at CER Number of marketed blockbusters * 16 blockbusters Ocrevus 17% Hemlibra 28% Hemlibra Evrysdi 101% Phesgo 150% Tecentriq Vabysmo n/a Alecensa Tecentriq 10% Alecensa 16% Kadcyla Kadcyla 11% Vencle
Slide 12: Evolving as leader in Ophthalmology, Neuroscience, Hematology
Evolving as leader in Ophthalmology, Neuroscience, Hematology YTD Sep 2022 Pharma sales Record number of NMEs and AIs (YTD Sep 2022) YTD Sep 2017 YTD Sep 2022 Phase I Phase II CHF 30.6bn CHF 33.2bn 2% 3% 8% 10% 4% 3% 3% 3% 11% 9% 7% 15% 38% 3% 3% 9% 62 29 11% 31% 65% 14% 52% 17% 31% 6% 10% 15% 15% P
Slide 13: Ophthalmology pipeline gaining momentum
Ophthalmology pipeline gaining momentum Further improving the SOC and expanding in new indications Ph I (5 NMEs, 1AI) Ph II (3 NMEs) Ph III (4 AIs) Launched (2NMEs, 1AI) NME Anti-IL-6 Vabysmo Vabysmo RG6351 RG6179 RG7716 RG7716 Retinal disease DME BRVO nAMD NME CB2 receptor agonist Vabysmo Vabysmo R
Slide 14: Ophthalmology R&D focus area
Ophthalmology R&D focus area Developing PHC solutions supported by new partnerships Drug pipeline Biomarkers enabling PHC Future technologies diversification Biomarker identification On market Gene therapy • Integration of omics, clinical and imaging • Lucentis, Vabysmo, Susvimo, Luxturna • AAV engi
Slide 15: Ophthalmology: Set to become a market leader
Ophthalmology: Set to become a market leader HC systems recognize importance of durability to overall outcomes and costs Initial uptake in high unmet need patients Global retina market growing to USD 15 bn1 • Strong customer uptake with switching coming primarily from aflibercept • Uptake across bot
Slide 16: Neuroscience and Rare disease
Neuroscience and Rare disease Industry leading portfolio differentiated on targets and technologies Ph I (6 NMEs) Ph II (8 NMEs) Ph III ( 3 NMEs, 6 AIs) Launched (3) prasinezumab delandistrogene rugonersen RG7935 RG6356 moxeparvovec Ocrevus RG6091 Parkinson’s RG1594 Angelman syndrome RD DMD RD Multi
Slide 17: Neuroscience and Rare disease: Utilizing emerging technologies
Neuroscience and Rare disease: Utilizing emerging technologies New approaches in genomic medicine, biomarkers and clinical data integration Novel platform technologies: Novel biomarkers and digital More than 90% of our clinical Exploring different therapeutic & innovation: trials in neuroscience hav
Slide 18: Oncology & hematology pipeline with 35 NMEs
Oncology & hematology pipeline with 35 NMEs Portfolio evolution through diverse targets and modalities Ph I (24 NMEs) Ph II (4 NMEs) Ph III (4 NMEs) Registration (2 NMEs) RG6007 HLA-A2-WT1 x CD3 PD1 x LAG3 tiragolumab glofitamab RG6076 CD19-4-1BBL RG6139 RG6058 RG6026 Solid tumors Multiple indicatio
Slide 19: Roche striving for leadership in hematology
Roche striving for leadership in hematology Investing across Broad portfolio enables Exploring diversified Improving patient / growing indications novel combinations modalities provider experience and new disease areas Moving into multiple Polivy + CD20 x CD3 Bispecifics Fixed duration myelo
Slide 20: Hematology market expected to grow substantially
Hematology market expected to grow substantially Roche has one of the broadest hematology portfolios with ~20 agents in 10+ diseases Global hematology market Roche’s hematology portfolio is well positioned in a growing market growing to USD 109bn1 109 † glofitamab (CD20 x CD3), 18 DLBCL CD19 x 4-1BB
Slide 21: Tiragolumab development program with read-outs in 2023
Tiragolumab development program with read-outs in 2023 Early data (SKYSCRAPER-01) show encouraging efficiency in 1L PDL1+ NSCLC Anti-TIGIT mAb Tiragolumab development program • Fully human IgG1/kappa Ab with intact Fc • SKYSCRAPER-01 did not meet its co-primary PFS endpoint. The co-primary OS endpoi
Slide 22: Broadest set of technology platforms available
Broadest set of technology platforms available Roche being a pioneer in antibodies, ADCs and bi-specifics List of pipeline molecules shown below is not complete; 1 Repare Therapeutics managed, 2 Poseida Therapeutics managed, 3 Kiniksa Pharmaceuticals managed, 4 Lineage Cell Therapeutics managed, 5IO
Slide 23: Novel platform technologies: Neoantigen specific therapies
Novel platform technologies: Neoantigen specific therapies Exploring multiple approaches in vaccines and cell based therapies with partners Blood and Mutation Neoantigen Vaccine tumor biopsy identification prediction manufacturing • Autogene cevumeran: Individualized mRNA vaccine directed against pa
Slide 24: Novel platform technologies: Allogeneic CAR-Ts
Novel platform technologies: Allogeneic CAR-Ts Exploring 2nd gen CAR-Ts in paralell to bi-specifics Allogeneic CAR-Ts have the potential to address Poseida has differentiated technology, clinical limitations of first generation cell therapies experience, and complementary programs • Better scaling,
Slide 25: Key late-stage pipeline readouts 2023
Key late-stage pipeline readouts 2023 * Compound Indication Data readout Tecentriq + chemo Neoadjuvant / adjuvant NSCLC Ph III IMpower030 Tecentriq + Avastin Adjuvant HCC Ph III IMbrave050 Tecentriq + chemo Neoadjuvant / adjuvant TNBC Ph III GeparDouze/NSABP B-59 Tecentriq Adjuvant SCCHN Ph III IMvo
Slide 26: Diagnostics upcoming opportunities
Innovation strategy Pharma rejuvenation & positioning Diagnostics upcoming opportunities Outlook
Slide 27: High throughput testing solution driving Diagnostics base business
High throughput testing solution driving Diagnostics base business Diagnostics Installed base for cobas 6800/8800 Quarterly sales evolution 2021-2022 Sales evolution 2018- Q3 2022 % CER +55% +48% +55% +45% +35% +31% +24% +25% +17% +18% +15% +9% +7% +5% +11% +10% +3% +8% -5% 0% -4% -15% Q1 Q2 Q3 Q4 Q
Slide 28: Serum Work Area (SWA) menu expansion driving future growth
Serum Work Area (SWA) menu expansion driving future growth >240 assays running on >100k installed cobas® SWA instruments Broad IM + CC assay menu Launched in 2021 & 2022 Immuno chemistry assays Clinical chemistry assays EBV EBNA IgG (CE) IGRA SARS-CoV-2 (CE) Fentanyl3 (CE, US) Benz 22 (US) EBV VCA I
Slide 29: Elecsys Amyloid Plasma Panel clinical results
Elecsys® Amyloid Plasma Panel clinical results Addressing the unmet need of early detection of Alzheimer’s disease pathology 1 2 3 Triage Confirmation Therapy Patients undergoing initial evaluation Patients referred for amyloid Patients identified for future therapies for non-specific cognitive decl
Slide 30: Pipeline innovations driving market access in coming years
Pipeline innovations driving market access in coming years Mass Spectrometry Next generation sequencing First fully integrated mass spectrometry First end-to-end IVD sequencing solution ● Integration of mass spec into the Core Lab ● Sample in - result out ● Increase patient access to mass spec techn
Slide 31: Outlook
Innovation strategy Pharma rejuvenation & positioning Diagnostics upcoming opportunities Outlook
Slide 32: YTD Sep 2022: Solid underlying sales growth in both divisions
YTD Sep 2022: Solid underlying sales growth in both divisions Pharma Diagnostics Quarterly sales evolution 2021-2022 Quarterly sales evolution 2021-2022 % CER % CER +55% +55% +48% +45% +55% +45% +35% +35% +31% +24% +25% +25% +17% +18% +15% +14% +15% +9% +7% +4% +5% +6% +6% +3% +5% +2% +5% +11% +10%
Slide 33: 2021: 35th consecutive annual dividend increase
2021: 35th consecutive annual dividend increase CHF 10 9.30 9 8 7 6 5 4 3 2 1 0 1989 1994 1999 2004 2009 2014 2019 2021 dividend as proposed by the Board of Directors; Note: For 1995, a special dividend was paid out to mark F. Hoffmann-La Roche’s 100th anniversary in 1996 33
Slide 34: 2022 outlook confirmed
2022 outlook confirmed Group sales growth1 • Stable to low-single digit Core EPS growth1 • Low- to mid-single digit Dividend outlook • Further increase dividend in Swiss francs 1 At Constant Exchange Rates (CER) 34
Slide 35: Doing now what patients need next
Doing now what patients need next 35
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