Roche flags 2023 earnings decline on slump in COVID products

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Roche warned of a decline in 2023 earnings, as revenue growth from new drugs, including its haemophilia treatment and multiple sclerosis drug, would not make up for a steep demand drop for COVID-19 treatments and diagnostic testing.

Last year, Roche group revenue edged 1% higher to 63.3 billion Swiss francs, the company reported, beating market expectations of 63.2 billion francs, while core operating profit gained 1% to 22.2 billion Swiss francs, just shy of the average analyst estimate of 22.4 billion francs.

As a result, the stock has fallen about 11% over the past three years, lagging its key global rivals.The onus to reinvigorate the pipeline will be on chief executive officer-designate Thomas Schinecker, who was previously Roche's head of diagnostics and due to be promoted to group CEO in March. Family-controlled Roche said on Thursday that Teresa Graham, currently Head of Global Product Strategy for Roche Pharmaceuticals, would succeed Anderson.

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