SWITZERLAND— In a year marked by unprecedented challenges in the pharmaceutical industry, Roche, the Swiss drugs and diagnostics giant, showcased its resilience and innovative prowess.
The company’s first-half core operating profit faced a 14% dip, grappling with a sharp decline in sales of COVID-19 products.
Nevertheless, Roche’s unwavering spirit found solace in the triumphant launch of its groundbreaking eye drug, Vabysmo, which proved to be a powerful growth driver.
As the company navigates through headwinds, Roche’s remarkable ability to adapt and thrive is evident in its soaring sales of Polivy, another promising medication in its portfolio.
During the second quarter, Roche’s pharma division exhibited commendable performance, recording sales of 11 billion Swiss francs (US$12.6 billion), slightly down from the first quarter’s 11.7 billion Swiss francs (US$13.4 billion).
However, two significant challenges dampened the company’s prospects. Actemra, once a potent COVID-related revenue generator, posted no sales this quarter, while COVID antibody Ronapreve saw its sales journey end earlier this year.
Amidst the turmoil, Vabysmo emerged as a standout contender, outperforming analysts’ expectations.
Approved in early 2022, this groundbreaking injection for age-related macular degeneration (AMD) and diabetic macular edema (DME) swiftly crossed the one-billion-dollar sales mark, clocking an impressive 957 million Swiss francs (US$1.1 billion) in the first half of 2023.
As Vabysmo gains traction and vies for dominance in the market, its primary competitor, Regeneron’s Eylea, encountered regulatory setbacks due to manufacturing issues with its high-dose formulation.
The delay in high-dose Eylea’s approval provided Roche with a golden opportunity to solidify Vabysmo’s position further.
Engaging retinal specialists and reaching out to a broader patient base, Roche aims to establish Vabysmo as the preferred treatment option, with its advantage of longer dosing intervals.
Roche’s CEO, Graham, expressed satisfaction with Vabysmo’s increasing patient adoption. Notably, a significant proportion of Vabysmo recipients were new to treatment, signaling a shift in patient preferences and a promising avenue for further growth.
Addressing concerns about a slight slowdown in Vabysmo’s quarterly sales gain, Graham reassured investors that such fluctuations were expected and attributed them to “funky” buying patterns.
Given the drug’s reliance on contracting, variations in sales from quarter to quarter were a common phenomenon.
Fueling Vabysmo’s growth momentum, Roche submitted the drug for approval in yet another indication – retinal vein occlusion. The FDA is slated to decide on this new use by December 22.
If approved, it would open up a whole new patient population for Roche to serve, bolstering the drug’s blockbuster ambitions.
As Vabysmo shines as Roche’s premier growth driver, Polivy, an antibody-drug conjugate, is also commanding attention with its impressive sales surge of 129% in the second quarter compared to the same period last year.
The FDA’s approval for its use in first-line diffuse large B-cell lymphoma catapulted Polivy to the spotlight, prompting analysts to estimate its peak sales potential at a staggering US$2 billion.
Roche’s CEO confirmed this ambitious sales target and hinted at the possibility of even greater success in the future.
Overall, Vabysmo and Polivy are part of a portfolio of 20 new medicines launched by Roche since 2015, which now account for a substantial portion of its pharma sales haul.
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