Roche Holding Ltd · SIX:RO
Roche — Bernstein's 21st Pan European Annual Strategic Decisions Conference 2024
29 slides from Roche's conference presentation, Sep 26, 2024
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: Opening remarks
Opening remarks Alan Hippe | CFO Roche Group Bernstein's 21st Pan European Annual Strategic Decisions Conference 26 September 2024
Slide 4: Group performance, Strategy & refocusing, Outlook
Group performance Strategy & refocusing Outlook
Slide 5: HY 2024: High single digit growth in both divisions in Q2
HY 2024: High single digit growth in both divisions in Q2 Second quarter without significant COVID-19 impact Pharma* Diagnostics* Quarterly sales evolution 2022-2024 Quarterly sales evolution 2022-2024 % CER % CER 30% 30% +24% 20% 20% +12% +9% +10% +8% +9% 10% +6% +9% +7% +7% +7% +9% 10% +7% +8% +8%
Slide 6: HY 2024: Young portfolio delivering strong growth
HY 2024: Young portfolio delivering strong growth Vabysmo and Phesgo excellent growth momentum continues; Polivy on-track for blockbuster status Vabysmo 93% Phesgo 60% Ocrevus 8% Polivy 54% Evrysdi 25% Hemlibra 7% Xolair 10% Columvi >500% Gazyva 15% Alecensa 7% Xofluza 183% Actemra / RoActemra 3% En
Slide 7: Young portfolio to drive growth in the near- to mid-term
Young portfolio to drive growth in the near- to mid-term 2024 NME update: US approval for PiaSky in PNH achieved; inavolisib in HR+ breast cancer with PDUFA 27 Nov CHFm % of Pharma Sales2 14.0 55% 12.0 50% 10.0 41% 8.0 33% 6.0 1 4.0 2.0 0.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 HY 2021 H
Slide 8: HY 2024: Group core operating performance
HY 2024: Group core operating performance Core operating profit higher by +11% driven by higher sales and effective cost management HY 2024 HY 2024 vs. HY 2023 CHFm abs. CER CER growth Sales 29,848 +1,515 5% Other revenue 908 +94 11% Cost of sales -7,300 -168 2% R&D -6,268 -21 0% SG&A -6,376 -96 2%
Slide 9: 2024 guidance raised
2024 guidance raised 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 Further in
Slide 10: Strategy & refocusing
Group performance Strategy & refocusing Outlook
Slide 11: Progress on key strategic initiatives
Progress on key strategic initiatives Updated Group and Pharma strategies to be presented at Pharma Day on September 30th 2023 2024 Milestones achieved Q2 Q3 Q4 Q1 Q2 Q3 Q4 • Revised Ten-Year Ambitions and Group Strategy Group Presentation @ • New performance and reward practices rolled out Pharma D
Slide 12: R&D Excellence: Pharma leading in multiple therapeutic areas
R&D Excellence: Pharma leading in multiple therapeutic areas Diversified portfolio of innovative medicines Number 1 in key therapeutic areas Pipeline #1 in Neurology and Hemophilia, 78 NMEs in clinical development leading in Ophthalmology and Oncology Portfolio Innovation Roche Sales per therapeutic
Slide 13: R&D Excellence update
R&D Excellence update Implementation ongoing to strengthen and accelerate our pipeline Transform portfolio management 1 Set ambitious R&D objectives 2 Strengthen portfolio 3 & governance Q4 ’23 Q1 Q4 ‘23 Set clear and ambitious targets for all Introduced ‘the Bar’ Established end-to-end R&D producti
Slide 14: R&D Excellence – Our 2030 goals
R&D Excellence – Our 2030 goals Ambition to have the industry-leading R&D engine Increase Phase 0 Increase average peak year Increase Phase 3 initiations / year1: sales of pipeline assets: success rate: + 50% + 50% + 22%p. Success Volume Value rate Effectiveness R&D Excellence Costs Cycle time Effic
Slide 15: Pharma pipeline evolution in the last three quarters
Pharma pipeline evolution in the last three quarters Portfolio shaping ongoing: Focus on high-impact projects led to termination of 20% of total NMEs since Q2 23 NME changes since Q2 23 siRNA targeting AGT in hypertension NMEs added +13 8 -8 -3 Oncology / Hematology +5 (2) 81 4 1 Immunology +2 (1) -
Slide 16: Vacaville sale: Optimizing our Pharma manufacturing network
Vacaville sale: Optimizing our Pharma manufacturing network • Vacaville site sold for USD ~1.2bn* • Global network investment to Hillsboro Mannheim enable portfolio evolution Basel Penzberg South San Philadelphia Kaiseraugst Francisco Vacaville Shanghai Tokyo • Building capabilities in new Oceanside
Slide 17: Optimizing manufacturing network to address portfolio evolution
Optimizing manufacturing network to address portfolio evolution Addressing the demands of producing diverse molecules with smaller volume production needs Biologics portfolio evolution 15 Bubble size corresponds to total annual volume (kL) needed per product 2025 - 2035 Large volume production in 12
Slide 18: R&D Excellence: Diagnostics is leading in innovation
R&D Excellence: Diagnostics is leading in innovation We set the standard in the diagnostics industry Number 1 in Diagnostics Innovation #1 with high single-digit growth 14 FDA Breakthrough Device over past years1 Designations since 20183 FDA-approvals Pipeline New FDA-Approvals (PMA/BLA) (Roche Diag
Slide 19: Realizing synergies in Diagnostics and the Group
Realizing synergies in Diagnostics and the Group Acting on opportunities across the Group to improve operational performance FMI Near Patient Care* Shift of FMI from Pharma to Diagnostics Division Integration of Point of Care and Diabetes Care Leverage complementary patient/customer Combine our Diag
Slide 20: CE mark approvals for two key Diagnostics products
CE mark approvals for two key Diagnostics products Diagnostics to deliver mid to high single digit growth in coming years cobas ISE neo and Continuous glucose Next generation Mass spectrometry cobas c703 monitoring (CGM) sequencing (NGS) • Up to 100% higher throughput • 14 day real-time glucose sens
Slide 21: Outlook
Group performance Strategy & refocusing Outlook
Slide 22: Key growth drivers beyond 2025
Key growth drivers beyond 2025 Intense news flow in 2025 Pharmaceuticals Diagnostics NME Indication Newsflow Timing Product Description Launch tiragolumab NSCLC Final Ph III data H2 2024 Total solution for clinical mass i601 mass spec 2024 spectrometry and first reagent ipack inavolisib BC US/EU fil
Slide 23: Inavolisib more than doubles PFS in 1L PIK3CA-mut HR+ breast cancer
Oncology solid tumors Inavolisib more than doubles PFS in 1L PIK3CA-mut HR+ breast cancer Additional Ph III trials ongoing, including head-to-head vs. alpelisib and in combination with Phesgo Ph III development program Ph III (INAVO120) inavolisib in 1L PIK3CA-mut HR+ mBC1 Inavolisib 1L PIKC3A-mut H
Slide 24: Trontinemab in AD clears Aβ more rapidly than conventional mAbs
Neurology Trontinemab in AD clears Aβ more rapidly than conventional mAbs First Aβ-targeting antibody Brainshuttle™ with Ph Ib/IIa in Alzheimer’s disease currently ongoing Trontinemab Trontinemab clearly differentiated from other anti-Aβ mAbs (Brainshuttle™ anti-Aβ mAb) PFS (investigator assessed) P
Slide 25: Prasinezumab in Parkinson's disease
Neurology Prasinezumab in Parkinson’s disease Ph II (PADOVA) data expected Q4 2024 Prasinezumab MoA1-13 Ph II (PASADENA) 4 year open label extension Prasinezumab-treated pts progress less than PPMI on MDS-UPDRS Part III OFF (motor examination) Prasinezumab selectively binds aggregated α-synuclein Pr
Slide 26: Positive Ph I results for CT-388 in obesity
Cardiovascular & Metabolism Positive Ph I results for CT-388 (GLP-1/GIP receptor agonist) in obesity Over 24 weeks CT-388 achieved a statistically significant mean placebo-adjusted weight loss of 18.8% GLP-1/GIP RA (CT-388) Development program Adenylyl cyclase CT-388 Gα GLP-1R • Elimination of β-arr
Slide 27: Roche set up to leverage obesity opportunity
Cardiovascular, Renal & Metabolism Roche set up to leverage obesity opportunity Despite numerous approved treatments, Obesity opportunity unmet needs remain Best- & first-in-class potential CT-388 and CT-996 with BIC potential, as well as CT-868 with BIC/FIC potential in OW/OB pts with T1D, based on
Slide 28: Upcoming Roche IR events 2024
Upcoming Roche IR events 2024 Additional events driven by readouts Pharma Day Neurology/CTAD Digitalization Day Sep 30 Oct/Nov Nov • Group & Pharma strategy • Key data presented at CTAD: • Roche digital efforts in Pharma update trontinemab Ph I/IIb expansion and Diagnostics • R&D excellence update c
Slide 29: Doing now what patients need next
Doing now what patients need next
Roche Holding — Bernstein's 21st Pan European Annual Strategic Decisions Conference 2024 on 6ix