Roche annual profit down after buyout

Swiss pharmaceutical giant Roche yesterday said its net profit fell 22 per cent last year due to its buyout of US biotechnology unit Genentech.

The Basel-based group said however that sales rose eight per cent for the full year to CHF49.1 billion or €33.3 billion, boosted by demand for products including Tamiflu, which is recommended by the World Health Organisation in treating swine flu.

Sales of Tamiflu alone jumped to CHF3.2 billion, up 435 per cent compared to 2008.

"This very high growth was driven by unprecedented demand from governments and in the retail pharmacy sector following the pandemic," it said, adding that sales for stockpiling reached CHF1.9 billion.

"In a turbulent external environment Roche performed extraordinarily well. Sales by both Pharma and Diagnostics grew twice as fast as their respective markets," said Severin Schwan, the group's chief executive officer.

It said that sales are expected to grow by around five per cent overall in 2010, excluding the Tamiful business.

For 2009, its net profit fell to CHF8.5 billion from CHF10.8 billion in 2008, due to Genentech, which it paid $46.8 billion to buy.

The restructuring of the acquired business, notably the closure of several sites in the United States, incurred a charge of CHF2.4 billion, the group said.