Roche Holding Ltd · SIX:RO
Roche — Octavian 29th Seminar (January 2025)
42 slides from Roche's conference presentation, Jan 9, 2025
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: Roche Update
Roche Update Thomas Schinecker | CEO Roche Group Octavian Seminar 9 January 2025
Slide 4: Group performance, Strategy update, Outlook
Group performance Strategy update Outlook
Slide 5: YTD Sep 2024: Continued strong growth momentum
YTD Sep 2024: Continued strong growth momentum COVID-19 sales in Diagnostics of CHF 0.3bn in Q4 2023 Group sales growth Group base business sales growth1 %CER %CER +15% +15% +10% +9% +9% +9% +10% +9% +9% +8% +7% +5% +5% +3% +3% +2% +1% +2% +1% 0% 0% COVID-19 Pandemic -3% COVID-19 Pandemic -5% -5% 20
Slide 6: HY 2024: Positive Core Operating Profit momentum
HY 2024: Positive Core Operating Profit momentum Higher sales and effective cost management resulting in strong performance HY 2024 HY 2024 vs. HY 2023 YTD Sep CHFm abs. CER CER growth Sales 29,848 +1,515 5% +6% Other revenue 908 +94 11% Cost of sales -7,300 -168 2% R&D -6,268 -21 0% SG&A -6,376 -96
Slide 7: YTD Sep 2024: Key growth drivers of the Roche portfolio
YTD Sep 2024: Key growth drivers of the Roche portfolio Significant milestones achieved in Q3 to enable future growth +5% YTD Sep 2024 sales Diagnostics: +8% base business growth (CHFbn, YoY CER growth) (+8%)* Significant launches upcoming Itovebi: US approval in 1L PIK3CA-mut HR+ BC 10.7 Tecentriq
Slide 8: Pharma: Young portfolio to drive growth in the near- to mid-term
Pharma: Young portfolio to drive growth in the near- to mid-term US approval for Itovebi (inavolisib) in HR+ breast cancer and PiaSky in PNH achieved CHFm % of Pharma Sales2 20.0 56% 18.0 50% 16.0 42% 14.0 12.0 34% 10.0 8.0 1 6.0 4.0 2.0 0.0 YTD Sep 2021 YTD Sep 2022 YTD Sep 2023 YTD Sep 2024 2015 2
Slide 9: 2024 guidance raised at HY
2024 guidance raised at HY Core EPS guidance raised from “broadly in line with sales” to “high single digit Core EPS growth” Group sales growth1 Mid single digit sales growth High single digit Core EPS growth Core EPS growth1 excl. impact from resolution of tax disputes in 2023 Dividend outlook Furt
Slide 10: Group performance, Strategy update, Outlook
Group performance Strategy update Outlook
Slide 11: Overview of key strategic initiatives
Overview of key strategic initiatives Significant progress made across the entire organization Ten-Year Ambitions Group Strategy Group Strategy Digital Health Sustainability People & Culture Pharma Strategy Diagnostics Strategy Divisional Strategies R&D Excellence Formation of Near Patient Care Oper
Slide 12: Overview of key strategic initiatives
Overview of key strategic initiatives Significant progress made across the entire organization Ten-Year Ambitions Group Strategy Group Strategy Digital Health Sustainability People & Culture Pharma Strategy Diagnostics Strategy Divisional Strategies R&D Excellence Formation of Near Patient Care Oper
Slide 13: The future of healthcare
The future of healthcare Disease burden and system pressures increase, while care delivery becomes more decentralized Increasing disease burden Healthcare system pressures 50% of disease burden in cardiovascular-metabolism, Average healthcare cost grew above GDP growth the oncological, and neurologi
Slide 14: Disease burden increase and decentralization trend
Disease burden increase and decentralization trend Priority areas to account for ~50% of disease burden; care delivery growing faster in outpatient setting ~50% of disease burden in shared priority areas by 2035 Outpatient setting to grow 3x faster vs. hospital setting Increase of Disability-adjuste
Slide 15: The future of healthcare: Business implications
The future of healthcare: Business implications How we address these trends through our strategy Increasing disease burden Healthcare system pressures Innovate and offer holistic solutions to improve outcomes Prioritize disease areas with high societal burden and reduce cost Decentralized care deliv
Slide 16: Creating a healthier future, together
Creating a healthier future, together Roche is uniquely positioned to address patient and healthcare system needs across the patient journey Value to Diagnostics Pharma Value to health- patients Inf. Diseases CVM Oncology Neurology Immunology Ophthalmology care systems by identifying high-risk … to
Slide 17: Overview of key strategic initiatives
Overview of key strategic initiatives Significant progress made across the entire organization Ten-Year Ambitions Group Strategy Group Strategy Digital Health Sustainability People & Culture Pharma Strategy Diagnostics Strategy Divisional Strategies R&D Excellence Formation of Near Patient Care Oper
Slide 18: Our updated Ten-Year Pharma Ambition
Our updated Ten-Year Pharma Ambition Focus on delivering transformative medicines, enabled by R&D and business objectives Pharma Ambition 2020-2029 Deliver 20 transformative medicines1 addressing diseases with the highest societal burden2 Value Innovation Access 80% 3x +40% of pipeline has best-in-
Slide 19: Our new Pharma Strategy focuses on five TAs
Our new Pharma Strategy focuses on five TAs Our focus therapeutic areas address ~60% of the global burden of disease and Mns of patients worldwide Global Burden of Disease in 2023 and 2035 Growth, Number of people living with diseases in our (million DALYs) p.p % committed therapeutic areas globally
Slide 20: Many MoAs in our portfolio span multiple therapeutic areas
Many MoAs in our portfolio span multiple therapeutic areas For example, incretins have the potential to become a foundational target within several TAs Drug target Oncology/Heme Neurology Immunology Ophthalmology CVRM CD20 CD 19 IL6 VEGF C5 GLP-1/GIP NLRP3 Latent myostatin VEGF=vascular endothelial
Slide 21: The Bar is applied to each asset entering and progressing in the portfolio
The Bar is applied to each asset entering and progressing in the portfolio Applying rigor to our R&D resource allocation Follow the science Intentional focus in end-to-end disease areas where we develop depth of with emphasis on breakthrough innovation and patient value + experience and operational
Slide 22: Strengthening our Pharma pipeline
Strengthening our Pharma pipeline Since Q2 2023, 21 NMEs were added and 29 NMEs removed, resulting in a higher impact portfolio Pipeline changes since Q2’23 siRNA targeting AGT in Allogeneic CAR-T in hypertension Onco/Heme, Immuno and Neuro 8 -8 21 Additions 81 4 -3 1 -5 • 10 Ph I/Ph II NMEs acquire
Slide 23: We have materially reshaped our pipeline through Partnering and M&A
We have materially reshaped our pipeline through Partnering and M&A Key deals completed to complement our pipeline across the Pharma focus therapeutic areas * Dual GLP- Molecular Allogeneic 1/GIP RA & siRNA Anti-TL1A in Wnt agonist glue ADCs in CDKi CAR-Ts in PYY targeting inflammatory in degraders
Slide 24: 'Fast-track' of selected programs with exceptional potential
‘Fast-track’ of selected programs with exceptional potential Material progress achieved across all three programs since Pharma Day Asset Acceleration Progress since Pharma Day (Sep. 2024) anti-TL1A Inflammatory Bowel Disease1 Ph III • Accelerated Ph III recruitment Trontinemab • Frontloading activit
Slide 25: Obesity: Pipeline with potentially unique combination opportunities
Cardiovascular, Renal & Metabolism Obesity: Pipeline with potentially unique combination opportunities Despite numerous approved treatments, unmet need remains; Roche set up to leverage obesity opportunity Obesity portfolio Roche’s obesity pipeline Unmet need Differentiation strategy Ph I Ph II Effi
Slide 26: Alzheimer's disease: Trontinemab with potential to enter Ph III in 2025
Neurology Alzheimer’s disease: Trontinemab with potential to enter Ph III in 2025 Best-in-class potential: Fast and deep plaque removal with an improved safety profile Trontinemab clears amyloid more rapidly than conventional mAbs Standard IgG1 BrainshuttleTM IgG1 • Trontinemab crosses the BBB using
Slide 27: TL1A is implicated in multiple immunological diseases
Immunology TL1A is implicated in multiple immunological diseases Continuing to explore additional indications TL1A implicated in inflammatory and fibrotic processes1,2 RG6631 (anti-TL1A) development program DR3 Receptor DR3 DR3 Receptor Receptor Indication Development stage Status Gastroenterology I
Slide 28: Embracing bold objectives: Our 2030 R&D ambitions
Embracing bold objectives: Our 2030 R&D ambitions Toward top quartile industry performance Increase average peak year sales of Increase Ph 0 initiations/yr1: Increase Ph III success rate: pipeline assets: +50% +22%p +50% Success Volume Value rate Effectiveness R&D Excellence Costs Cycle time Efficie
Slide 29: Meaningful improvements achieved in 2024
Meaningful improvements achieved in 2024 R&D Excellence enables us to reallocate resources to new projects, new deals & accelerate priority assets Added 5 assets through high- CHF +0.24bn average peak year sales per Recent team-assessed PTS for value partnerships and 8 assets project trough terminat
Slide 30: Leveraging AI to increase overall Pharma productivity
Leveraging AI to increase overall Pharma productivity Selected AI use cases along the value chain Regulatory & Manufacturing Drug development Commercialization reimbursement & distribution ‘Lab-in-a-loop’ Document writing Digital twin Predictive alerts • AI/ML: Computational • Gen AI: co-author CSRs
Slide 31: Overview of key strategic initiatives
Overview of key strategic initiatives Significant progress made across the entire organization Ten-Year Ambitions Group Strategy Group Strategy Digital Health Sustainability People & Culture Pharma Strategy Diagnostics Strategy Divisional Strategies R&D Excellence Formation of Near Patient Care Oper
Slide 32: Transformation of Roche Diagnostics 2020-2021
Transformation of Roche Diagnostics 2020-2021 Simplified operating model and shift of investments; increased employee engagement Innovation & financial success Operating model Culture Engagement & diversity • Increased R&D investments by 500m CHF • Simplified processes and • Updated operating princi
Slide 33: Recent FDA PMA/BLA approvals
Recent FDA PMA/BLA* approvals We received >50% of overall FDA approved innovative IVD solutions in the last 6 years New FDA PMA/BLA approvals (Roche vs. competitors) 43 38 19 32 26 11 23 29 19 8 15 24 13 21 15 9 11 6 2019 2020 2021 2022 2023 2024 Roche Competitors * PMA/BLA=Premarket Approval/Biolog
Slide 34: Accelerated momentum driven by key launches
Accelerated momentum driven by key launches Diagnostics to deliver mid to high single digit growth in coming years Continuous glucose Next generation LumiraDx Mass spectrometry monitoring (CGM) sequencing (NGS) • Consolidate PoC testing on a • 14 day real-time glucose sensor • First fully integrated
Slide 35: Group performance, Strategy update, Outlook
Group performance Strategy update Outlook
Slide 36: Roche delivered consistent growth through biosimilar erosion
Roche delivered consistent growth through biosimilar erosion Successful diversification driven by young portfolio with 16 blockbusters in Pharma CAGR at CER 70 37 years of continuous Ronapreve dividend increases +5% Sales 60 +7% Core EPS 50 Sales in CHFbn (CER) 40 Pharma 30 20 Avastin, Herceptin, Ma
Slide 37: A solid base to deliver future growth
A solid base to deliver future growth Pipeline and business development to add significant upside potential illustrative Business development • BD to accelerate pipeline portfolio • In-house pipeline with upside Pharma pipeline potential • On-market Pharma portfolio to deliver growth until 2027 Sale
Slide 38: Consensus outlook 2023-28
Consensus outlook 2023-28* Growth driven by our young on-market portfolio; potential pipeline up-side Biosimilar gap (23-28) Consensus sales growth (23-28) Potential up-side 2025+ Vabysmo 4.6 bn Ocrevus 1.5 bn Ronapreve 0.5 bn Polivy 1.3 bn Assets with low to no coverage in Lucentis 0.5 bn Columvi 1
Slide 39: 2025: Significant key newsflow and Ph III initiations
2025: Significant key newsflow and Ph III initiations* Compound Indication Milestone inavolisib + palbociclib + fulvestrant 1L PIK3CA-mut HR+ BC EU approval Columvi + GemOx 2L+ DLBCL US/EU approval Lunsumio SC 3L+ FL US/EU approval Elevidys DMD EU approval Regulatory Gazyva Lupus nephritis US/EU fil
Slide 40: Peak sales potential of key pipeline assets (NMEs and LEs)
Peak sales potential of key pipeline assets (NMEs and LEs) New Molecular Entities (NME) giredestrant prasinezumab astegolimab HR+ BC Parkinson's disease COPD Itovebi fenebrutinib ASO Factor B • 7+ NMEs with CHF >3bn peak Pi3Km BC RMS, PPMS IgAN sales potential per asset divarasib Elevidys1 vamikibar
Slide 41: Building blocks for future growth
Building blocks for future growth Pipeline and business development to add significant upside potential Business development Oncology/Hematology Emerging assets from early pipeline Neurology Immunology CT-388 / gamma-secretase Ophthalmology zilebesiran CT-996 / CT-868 NXT007 modulator CVRM vamikibar
Slide 42: Doing now what patients need next
Doing now what patients need next