+1 - Roche

Roche 

First quarter 2003 

Charles Sabbah 

Head of Pharma Strategic Marketing 

Exane Pharma Seminar 

Paris May 12 th , 2003 

r 

2

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 strategy, goals, plans or intentions. Various factors may cause actual 

results to differ materially in the future from those reflected in forward-looking 

statements contained in this presentation among others: (1) pricing and product 

initiatives of competitors; (2) legislative and regulatory developments and economic 

conditions; (3) delay or inability in obtaining regulatory approvals or bringing products to 

market; (4) fluctuations in currency exchange rates and general financial market 

conditions; (5) uncertainties in the discovery, development or marketing of new products 

or new uses of existing products; (6) increased government pricing pressures; (7) 

interruptions in production; (8) loss of or inability to obtain adequate protection for 

intellectual property rights; (9) litigation; (10) loss of key executives or other employees; 

and (11) adverse publicity or news coverage. 

3

Sales first quarter 2003 

A good start 

r 

sales (CHF m) 2003 2002 % CHF % local 

Pharmaceuticals 1 4,991 4,768 5 18 

Prescription1 4,585 4,379 5 18 

OTC2 406 389 4 13 

Diagnostics 1,738 1,790 -3 7 

sales core businesses 1 6,729 6,558 3 15 

Vitamins and fine chemicals 744 862 -14 -3 

reclassification1 -46 -54 

sales (financial statements) 7,427 7,366 1 13 

1 sales in 2003 and 2002 are adjusted to include the reclassification of CHF 46 million and CHF 54 million 

of sales to the Vitamins and Fine Chemicals Division as divisional sales to third parties 

2 including Chugai OTC 

4

Clear focus on innovating healthcare 

Two high tech pillars 

1990 2000 2003 

Genentech Syntex 

Vitamins and Fine Chemicals 

Fragrances and Flavours 

PCR Boehringer 

Mannheim 

Pharma 

Chugai 

AVL 

Diagnostics 

Disetronic 

r 

r 

• No. 1 Diagnostics company 

• No. 1 Oncology company 

• No. 2 Biotechnology company 

• No. 3 Specialty care company 

• Distinctive research network 

across the globe 

• Joint programs in genetics 

and oncology 

5

Highlights first quarter 2003 

Strategic and operational level 

• Double digit sales growth for the Group, helped by strong 

underlying growth of marketed products, the integration of 

Chugai and new product launches 

• Continued strong growth of our oncology and transplantation 

franchises - virology franchise now back on growth path 

r 

• Diagnostics outperforming the market, despite downturn of the 

biotechnology research market 

• Considerable currency impact on CHF sales in Q1 '03 

• Contract signed for Vitamins divestiture to DSM, expected close 

H1 '03 

• Public offer for Disetronic, expected close May / June 2003 

6

Highlights first quarter 2003 

Financials 

• EMTN program launched 

r 

– build-up Roche brand perception on institutional fixed income markets 

– re-finance maturing capital market debt and bank-loans 

– improve risk-profile of balance sheet 

• Cash and marketable securities 

– equity position reduced by over 15 % (in absolute terms against 

31.12.2002), P&L neutral 

7

2003 and 2002 

First quarter 2003 average exchange rates 

YTD YTD YTD March '03 vs. YTD March '02 

March '03 March '02 

EUR 1.47 1.47 

GBP 2.19 2.40 

JPY 1.15 1.27 

USD 1.37 1.68 

r 

-20% -15% -10% -5% 0% 

8

Outlook 

2003 

• Double-digit growth in sales and operating profit for Group, and both the 

Pharmaceuticals and Diagnostics division in local currencies; each above 

market growth 

• Stable operating profit margins for the Group as a whole. 

Tax rate around 29 % 

... and after 

r 

• Improved operating profit margins: Group > 20 % in medium term; 

Pharmaceuticals approaching 25 % by the end of 2004; Diagnostics slightly 

better than 20 % by 2006 

• By the end of 2004 conditions in place for a balanced financial income 

9

Diagnostics Division 

r 

10

Performance 

Strategic initiatives and outlook 

r 

11

Roche Diagnostics continues to outpace 

the industry 

In Vitro Diagnostics, first quarter 2003 


Abbott 

J & J 

Bayer 

Beckman C. 

Dade Behring 

IVD Market 

market share 1 

5 % 

8 % 

7 % 

12 % 

11 % 

0 % 5 % 10 % 15 % 

19 % 

source: Boston Biomedical Consultants, Roche analysis 

1 excludes Life Science research market (Applied Science) 2 in local currencies 

sales growth 1,2 

0 % 

3 % 

5 % 

6 % 

7 % 

0 % 5 % 10 % 

r 

11 % 

12 % 

12

Diabetes Care 

Accu-Chek Compact exponential growth 

AC 

Advantage 

AC Active 

AC 

Compact 

AC SoftClix 

Q1 '03: CHF 628 million 

(+16 % local growth) 

other 

(+1457 %) 


(-39 %) 


(+6 %) 

0 200 400 600 

Q1 '02 Q1 '03 

• Accu-Chek Compact and Active 

grew above expectations 

• Strong sales in Nth Am. & Japan 

• Roll-out of improved strips and 

meters, combined with data 

management in 2003 

AC = Accu-Chek 

r 

13

Molecular Diagnostics 

Strategic deals for entry into new markets 

IVD market: Q1 '03: CHF 198 million 

(+14 % local growth) 

HIV quant 

AmpliScreen 

HCV qual/ quant 

CT/NG 

HBV quant 

other 

0 20 40 60 80 

Life science business: Q1 '03: CHF 19 million 

Industrial 

(-58 % local growth) 

Q1 '02 Q1 '03 

(+47 %) 

(+1 %) 

(+41 %) 

(+5 %) 

(+2 %) 

(+8 %) 

0 20 40 60 80 

• Strong growth in Bloodscreening 

& STD testing 

• Industrial business significantly 

affected by downturn in biotech 

research 

• Entry into new testing areas 

– Introduction of AmpliChip p450 

microarray Q2 '03 

– AmpliScreen West Nile Virus 

ASR in Nth Am. Q3 '03 

⇒ Molecular Diagnostics: Q1 '03: CHF 217 million (-1 % local growth) 

r 

14

Centralized Diagnostics 

Solid growth in a mature market 

Clinical chemistry 

Immunochemistry 

Coagulation 

Hematology 

Urinalysis 

Other/ service 


(+5 % local growth) 

(-2 %) 

(+4 %) 

(-8 %) 



(0 %) 

0 100 200 300 400 

Q1 '02 Q1 '03 

r 

• Strong Elecsys proBNP launch in US 

• Planned roll-out of new 

immunochemistry markers 

– P1NP - bone formation Q2 '03 

– SHBG - enlarging fertility menu 

Q3 '03 

– S 100 - potential marker for brain 

damage Q3 '03 

15

Near Patient Testing 

Demand increasing in coagulation monitoring 

Blood gas/ 

Electrolytes 

Coagulation 

Urinalysis 

Cardiac 

markers 

Clin Chem 

others (inc. 

DAT) 


(+4 % local growth) 


(+6 %) 

(+2 %) 

(-21 %) 

(+5 %) 


0 10 20 30 40 

Q1 '02 Q1 '03 

r 

• CoaguChek continuing strong growth 

• Introduction of OMNI C gaining blood 

gas market sales 

• OPTI reagents & platform and DAT 

rapid testing lines divested 

• Launch of OMNI S in Q2 will further 

strengthen position in blood gas 

systems 

16

Life Science Market 

r 

17

Applied Science 

Entry into new markets 


(-3 % local growth) 

Gene analysis 

Industrial enzyme projects 

LightCycler 

Biochemicals 

Proteomics 

Q1 '02 Q1 '03 

other 

(+7 %) 

(-6 %) 

(+27 %) 

(-5 %) 


(-20 %) 

0 20 40 60 80 

r 

• Sales affected by downturn in 

biotechnology and pharma research 

• Increased LightCycler usage in Nth 

Am. as a tool for developing solutions 

to address bioterrorism 

• Launches into new markets 

– automated BSE test (prionics-Chek 

LIA) Q2 '03 

– matriXarray for research market 

Q3 '03 

18

Diagnostics sales by business area 

first quarter 2003 

Strong sales in IVD overshadowed by downturn in 

life science market 

* Diagnostics 

Q1 '03 Q1 '02 growth 

CHF m CHF m local CHF 

Diabetes Care 628 605 16 % 4 % 

Molecular Diagnostics 198 194 14 % 2 % 

Centralized Diagnostics 623 644 5 % -3 % 

Near Patient Testing 137 145 4 % -6 % 

Roche in vitro Diagnostics 1,586 1,588 11 % 0 % 

Applied Science 133 152 -3 % -13 % 

Molecular Diag* - industrial business 19 50 -58 % -62 % 

Roche Diagnostics 1,738 1,790 7 % -3 % 

r 

19

Diagnostics sales by business area 

January to March 2002 and 2003 

1,7901,738 

2002 2003 

7 % local 

-3 % m CHF 

644 

5 % 

-3 % 

623 

Lab Network 

4 % 

-5 % 

244 

-1 % 

-11 % 

217 

145 

4 % 

-6 % 

137 

605 

16 % 

4 % 

628 

Diagnostics Centr. D Molecular D Near P T Diabetes C Applied S 

152 

r 

-3 % 

-13 % 

133 

20

Diagnostics sales by region Q1 2003 

Growing in all major markets 

CHF 1,738 million local sales growth vs. Q1 '02 

* Europe, Middle East and Africa (excl. Iberia) 

** includes industrial business 

Europe* 46 % 

Japan 5 % 

Asia-Pacific 5 % 

Latin America 3 % 

Iberia 5 % 

others** 2 % 

North America 34 % 

10 % 8 % 

Europe North 

Am 

14 % 

2 % 

Iberia Latin 

Am 

22 % 

Asia- 

Pacific 

r 

3 % 

Japan 

21

Performance 

Strategic initiatives and outlook 

r 

22

Disetronic transaction 

Timing / next steps 

r 

• Competition authority filings 28 February - 25 March 

• Start of due diligence 24 February 

• Publication of tender offer 24 March 

• Disetronic extraordinary shareholder meeting 23 April 

• End of first offer period 28 April 

• Publication of the interim result in Swiss newspapers 1 - 5 May 

• Additional acceptance period 5 - 16 May 

• Publication of final result in Swiss newspapers 18 - 21 May 

23

Cancer is a disease of the genome 

Diagnosis requires a set of technologies 

mutated 

DNA 

expression 

mRNA 

methylated 

DNA 

translation 

proteins 

CH 3 

markers on all levels of regulation 

CH 3 

screening 

r 

DNA alterations, release 

of tumor DNA into bodily 

fluids 

tumor characterization 

Altered gene expression 

Risk and therapy 

prediction 

24

Innovations for the future 

Key launches in 2003 

Diabetes Care 

• Q3 '03 Accu-Chek Advantage III Meter 

• Q2 '03 Accu-Chek Compact Super Fast Strip 

Molecular Diagnostics 

• Q2 '03 Cyp450 AmpliChip ASR (Nth. Am.) 

• Q3 '03 AmpliScreen West Nile Virus 

• Q4 '03 HCV genotyping test ASR (Nth. Am.) 

Centralized Diagnostics 

• Q2-Q4 '03 Elecsys marker (P1NP, SHBG, S100) 

• Q4 '03 TDM package II 

Near Patient Testing 

• Q3 '03 PT’s CoaguChek / CoaguChekS 

• Q2 '03 OMNI S 

Applied Science 

• Q3 '03 LightCycler 1.3 Instrument (LC), CE mark 

• Q3 '03 matriXarray 

OMNI S 


CYP450 

AmpliChip 

Cyp450 AmpliChip 

r 

* * * * 

matriXarray Reader & Chip 

25

Diagnostics 

Outlook 

• Continued double digit sales growth* for 2003, ahead of 

market average 

• Further improvement in operating profit, aiming at > 20 % by 

2006 

* local currency 

r 

26

Pharmaceuticals Division 

r 

27

Pharmaceuticals sales (adjusted) 

Q1 '03 growth vs. growth vs. Q1 '02 

in CHF m Q1 '02 in CHF in local currencies 

Roche Prescription1,2 3,136 -7 % 3 % 

Genentech Prescription 793 2 % 25 % 

Chugai Prescription3 Roche world wide 

656 205 % 236 % 

Prescription group1 4,585 5 % 18 % 

OTC 4 406 4 % 13 % 

Pharmaceuticals 1 4,991 5 % 18 % 

r 

1 sales in 2003 and 2002 are adjusted to include the reclassification of CHF 46 million and CHF 54 million of sales 

to the Vitamins and Fine Chemicals Division as divisional sales to third parties 

2 excludes Nippon Roche Rx 

3 consists of Nippon Roche Rx (Q1 2002) and Chugai Rx (Q1 2003) 

4 including Chugai OTC 

28

Pharmaceuticals 

Achievements first quarter 2003 

• World-wide development of MRA in RA with Chugai 

• Fuzeon 

– US: approved and launched 

– EU: positive opinion of CPMP in 

• NeoRecormon approved for once every two weeks in 

renal patients stable on once weekly regime 

• First promising data on T-1249 

• Pegasys patent extended to 2019 

r 

29

Sales of first quarter 2003 (vs. Q1 '02) 

Top 20 prescription products 

r 

total US J ROW 

CHF m % local CHF m % local CHF m % local CHF m % local 

MabThera/Rituxan 620 39 446 33 14 26 160 65 

NeoRecormon/Epogin 450 120 - - 156 - 294 40 

Rocephin 379 -16 215 -20 11 1 153 -10 

CellCept 313 39 166 49 4 21 143 28 

Herceptin 268 36 131 21 17 66 120 56 

Roaccutane 180 -34 109 -37 - - 71 -26 

Xenical 145 -19 35 -24 - - 110 -17 

Xeloda 133 50 79 51 - - 54 49 

Pegasys/Copegus 120 2,226 72 - - - 48 755 

Nutropin/Protropin 108 13 105 13 - - 3 17 

Tamiflu 107 97 16 -7 81 137 10 501 

Dilatrend 87 16 - - - - 87 16 

Kytril 87 -7 36 -23 24 11 27 10 

Pulmozyme 77 10 46 17 - - 31 1 

Cymevene/Valcyte 70 -10 40 -26 - - 30 35 

Activase/TNKase 70 11 65 13 - - 5 -13 

Neutrogin 70 - - - 70 - - - 

Viracept 65 -18 - - 0 -6 65 -18 

Madopar 57 6 - - 4 1 53 6 

Inhibace/Inhibace+ 55 7 - - 3 2 52 8 

30

Major growth drivers of first quarter 2003 

Multiple one-billion products 

MabThera 

NeoRec/Epogin 

Pegasys/Copeg 

sales of top 10 products 

Rocephin 

CellCept 

Herceptin 

Roacc 

Xenical 

Xeloda 

Nutr/Protr 

0 200 400 600 

Epogin 

CHF million 

all at local growth rates 

450 (+120 %) 

379 (-16 %) 

313 (+39 %) 

268 (+36 %) 

180 (-34 %) 

145 (-19 %) 

133 (+50 %) 

120 (n.a.) 

108 (+ 13 %) 

620 (+39 %) 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

sales of top 10 products 

as % of Prescription 

50 

59 

r 

59 

Q1 '01 Q1 '02 Q1 '03 

31

Local sales growth Q1 '03 vs. Q1 '02 2 

Prescription products 

-22 % 

largest negative deviation 1 largest positive deviation 1 

-34 % 

-16 % 

-19 % 

-34 % 

-18 % 

-27 % 

-24 % 

-17 % 

-19 % 

-16 % 

Roaccutane 

Rocephin 

Xenical 

Rocaltrol 

Viracept 

-84 

Fortovase/Invirase 

Neupogen 

Torem 

Rivotril 

Furtulon 

-107 204 MabThera/Rituxan* 

-37 

-18 

-15 

-14 

-14 

-11 

-10 

-8 

13 

8 

16 

59 

52 

85 

80 

101 

134 

Pegasys/Copegus 

CellCept 

NeoRecormon 

Herceptin* 

Tamiflu 

Xeloda 

Nutropin/Protropin 

Dilatrend 

Pulmozyme* 

1 CHF m at constant fx; 2 excluding Chugai products; * Roche and Genentech combined 

r 

+39 % 

>500 % 

+39 % 

+40 % 

+36 % 

+97 % 

+50 % 

+13 % 



+46 % 

32

Proteins and antibodies 

Roche group - the second biggest biotech company 

40% 

30% 

20% 

10% 

0% 

24 % 

30 % 

36 % 

40 % 

Q1 '01 Q1 '02 FY 2002 Q1 '03 

sales 1.1 1.3 6.3 1.9 

CHF billion 

33

First quarter Prescription* sales 

Key franchises are growing 

North 

America +8 % 

Western 

Europe +8 % 

Latin America -12 % 

38 % 

14 % 

34 % 

8 % 

6 % 

all growth figures are in local currencies 

* Roche, Genentech & Chugai combined 

Japan +236 % 

others +13 % 

transplant 

+25 % 

virology 

+ 63 % 

8 % 

9 % 

7 % 

28 % 

other -2 % 

anemia 


30 % 

9 % 

9 % 

infectious 

disease -16 % 

r 

oncology 

+36 % 

cardiovascular 


34

Oncology - Roche the no. 1 company 

Outperforming the market 

MabThera 

Herceptin 

Xeloda 

Kytril 

NeoRec (25 %) 

Neutrogin 

Furtulon 

Neupogen 

Roferon-A (85 %) 

Bondronat 

Picibanil 

0 200 400 600 

Q1 '02 Q1 '03 CHF m 

global (Roche & Genentech & Chugai) 

1 local growth 

sales 

growth 

+36 % 1 

r 

• Oncology franchise Q1 '03 

+36 % up to CHF 1.4 billion 

• Additional opportunities with 

Tarceva, Avastin, Bondronat, 

Pemtumomab 

• Expected to further increase, 

from CHF > 5 billion (2002) to 

CHF 6 - 8 billion (2005) 

35

MabThera - continued success 

First choice in aggressive and indolent NHL 

600 

400 

200 

0 

CHF m 

+39 % 1 

Q1 '00 Q1 '01 Q1 '02 Q1 '03 peak 

sales 


new up 

to 3,500 


• Growth drivers in oncology 

– more market penetration 

– more injections per patients 

r 

• RA: additional opportunity 

– MabThera in RA (TNF failures) start 

of recruitment for phase III study 

H1 '03 

– MabThera in RA (signs, symptoms & 

structural damages) start of 

recruitment for phase IIb study H1 '03 

36

Herceptin 

Targeted on HER2, focused on living 

300 

200 

100 

0 

CHF m 

+36 % 1 

Q1 '00 Q1 '01 Q1 '02 Q1 '03 peak 

sales 


up to 

1,500 


• Growth drivers (Q1) 

– increased testing 

– expansion in 1st line usage 

– longer duration of treatment 

r 

• Future growth 

– filing of 1st line treatment Herceptin 

+ Docetaxol expected H2 '03 

– Herceptin monotherapy in mBC 

3-weekly regimen, filing expected 

H2 '03 

37

Xeloda 

The powerful, yet gentle chemotherapy 

200 

150 

100 

50 

0 

CHF m 

Q1 

'99 

Q1 

'00 

Q1 

'01 

global (Roche & Chugai) 

Q1 

'02 

+50 % 1 

Q1 

'03 

over 

1,500 

peak 

sales 


• Growth drivers (Q1) 

r 

– steadily replace i.v. 5-FU/LV in mCRC 

(over 90 % of patients on i.v. 5-FU) 

– expanding use in mBC in combination 

(1st line in combo with taxanes) 

• Highlights: 

– development as 1st line in mCRC in 

combination with Eloxatin 

– safety data on adjuvant mCRC to be 

presented at ASCO 2003 

– efficacy data on adjuvant mCRC to be 

presented at ASCO 2004 

38

Virology franchise 

Strong growth 

Pegasys 

Viracept 

Invirase / Fortovase 

Hivid 

Copegus 

Q1 '02 Q1 '03 

Tamiflu 


sales 

0 20 40 60 80 100 120 


r 

sales 

growth 

+63 % 1 

39

Pegasys and Copegus 

Rapid and significant market up-take 

• Pegasys sales of CHF 97 million, Copegus sales of 

CHF 23 million in Q1 '03 = total CHF 120 million 

• Approved in 69 countries by end of Q1 '03 

• US: 21 % of total prescriptions of all interferon's 

28 % of new prescriptions 

• Launched in France in April, Italy imminent launch in May 

• Expected approvals in 2003: Japan, Canada, Australia 

• Data for patients with normal ALT - to be presented end 2003 

r 

40

Pegasys new & total prescription shares 

Capturing market share quickly 

100% 

80% 

60% 

40% 

20% 

As of 14 April 2003, Pegasys new prescription share is 

28.1 % and total prescription share is 21.7 % 

0% 

source: IMS - NPA, weekly data 

HCV interferon weekly 

new prescription share 

Rebetron 

Peg-Intron 

Infergen 

Pegasys 

69.9 % 

28.1 % 

36 39 42 45 48 51 2 5 8 11 14 

100% 

80% 

60% 

40% 

20% 

0% 

HCV interferon weekly 

total prescription share 

Rebetron 

Peg-Intron 

Infergen 

Pegasys 

r 

76.4 % 

21.7 % 

36 39 42 45 48 51 2 5 8 11 14 

41

Copegus new & total prescription shares 

Bold pricing strategy favored, value is in Pegasys 

100% 

80% 

60% 

40% 

20% 

As of 14 April 2003, Copegus new prescription share is 

19.7 % and total prescription share is 12.1 % 

0% 

Rebetol 

Copegus 

36 39 42 45 48 51 2 5 8 12 15 

source: IMS - NPA, weekly data 

ribavirin weekly 

new prescription share 

100% 

60% 

40% 

20% 

0% 

r 

80% 

80.3 % 87.9 % 

19.7 % 

ribavirin weekly 

total prescription share 

Rebetol 

Copegus 

12.1 % 

36 39 42 45 48 51 2 5 8 12 15 

42

Fuzeon 

Active against current strains of drug resistant HIV-1 

• US: approved 14th March 2003, launched by end of March 

• EU: positive CPMP-opinion 20th March 2003, 

expected approval in H1 '03 

• Priced at Euro 52 per daily treatment 

• Roche first company in US to agree with State AIDS Drug 

Assistance Programs (ADAP's) on pricing of HIV drugs (incl. 

Fuzeon) 

• Production capacity 

– end of '03: 20,000 production capacity; 12,000 - 15,000 patients 

– end of '04: 39,000 production capacity; 32,000 patients 

– end of '05: 39,000 production capacity; 39,000 patients 

r 

44

CellCept 

A cornerstone of transplant therapy 

400 

300 

200 

100 

0 

CHF m 

Q1 

'99 

Q1 

'00 

Q1 

'01 


Q1 

'02 

+39 % 1 

Q1 

'03 

over 

1,500 

peak 

sales 


r 

• US: #1 branded immuno-suppressant 

• Majority of all new transplants on 

CellCept (> 65 %) 

• Ongoing switch of existing patient pool 

to CellCept 

• 95 % organ-survival in 1st year after 

transplantation with CellCept 

⇒ increasing awareness by physicians 

45

NeoRecormon 

A CHF 2 billion drug on growth track 

500 

400 

300 

200 

100 

0 

CHF m 

+120 % 1 

Q1 '99 Q1 '00 Q1 '01 Q1 '02 Q1 '03 

NeoRecormon Epogin 

• NeoRecormon + Epogin* 

r 

– ~CHF 2 billion, + 120 % sales in Q1 '03 

• NeoRecormon alone 

– + 40 % sales in Q1 '03 

• Growth driven by 

– PRCA (renal & oncology) 

– increased investments 

global (Roche & Chugai) 1 local growth * at fx rate of ¥ 100 = CHF 1.30 

Opportunities 

• New treatment regimen 

– once every 2 weeks approved 

• New form (30,000 units) for oncology by 

end of '03 

• CERA 

46

Rocephin 

Influenced by external factors 

600 

400 

200 

0 

CHF m 

sales 

-16 % 1 

Q1 '99 Q1 '00 Q1 '01 Q1 '02 Q1 '03 



• Maintained market share and 

leadership position in injectable 

cephalosporin market in US 

• Growth in Q1 '03 affected by mild 

"respiratory season" and difficult 

comparison to previous year 

• Decision by major US Rocephin 

distributor to reduce inventory by 

ten days at the beginning of 2003 

r 

47

Roaccutane 

Declining within expectations 

400 

300 

200 

100 

0 

CHF m 

sales 

Q1 '99 Q1 '00 Q1 '01 Q1 '02 Q1 '03 


-34 % 1 


• US 

r 

– now two generics approved, one on 

the market in Q1 '03 

– general decline of the respective 

market segment by approx. -25 % in 

scripts vs. Q1 '02; in line with 

previous years 

• Pregnancy Prevention Program 

– in the EU recognized as a valuable 

safety initiative 

– CPMP harmonization requested and 

ongoing 

48

Our main primary care products 

Dilatrend 

Tamiflu 

Xenical 

sales 

+16 % 1 

+97 % 1 

0 50 100 150 200 

Q1 '02 Q1 '03 CHF m 

-19 % 1 


• Dilatrend 

– CARMEN data driving growth 

• Tamiflu 

r 

– strong influenza season in Japan 

• Xenical 

– marketing efforts focused on 

value added activities and 

reimbursement 

– Xendos study adds new power to 

our claim (diabetes prevention) 

49

Pipeline 

Development over the last 3 months 

• 2 new projects 

– 1 phase 0 (R1500) 

– 1 phase II (R1569 [MRA]) 

• Projects discontinued 

– 1 phase 0 (R1453) 

• Moved 

r 

– 6 from phase 0 to phase I (R1438, R1439, R1295, R1479, R1484, R1518) 

– 1 from phase I to phase II (BAL 5788 [opt-in opportunity]) 

50

Roche R&D pipeline today 

Total of 65 NME’s including 9 opt-in opportunities 

R1067 

R1440 

R1454 

R1495 

R1500 

R1503 

R1516 

R1533 

R1554 

R1559 

Gen 

phase 0 phase I phase ll 

acute coronary synd. 

antifungal (B) 

antifungal (B) 

depression 

type 2 diabetes 

solid tumors 

HIV 

Alzheimer’s 

RA 

anemia 

Alzheimer’s 

OAB 

solid tumors 

R701 

R944 

R1068 

R1204 

R1270 

R1295 

R1438 

R1439 

R1479 

R1484 

R1487 

R1492 

R1518 

R1550 

Chu 

Chu 

Chu 

Roche pipeline status on March 31, 2003 

depression / anxiety 

asthma 

solid tumors 

multiple myeloma 

osteoporosis 

breast cancer 

solid tumors (At) 

lung cancer (At) 

OAB 

HIV 

emesis 

HCV 



HCV 

SUI 

RA 

HCV 

breast cancer 

R411 

R1461 

R1524 

R1536 

R1569 

Gen 

Gen 

Chu 

Chu 

Chu 

Chu 

Chu 

renal transplant 

bone metastases 

subarachnoid haemorrhage (Ax) 

psoriasis (B) 

eczema (B) 

cardiovascular disease (S) 

antibiotic (B) 

asthma 

HPV 

solid tumors 

RA 

inflamm. bowel disease 

macular degeneration 

osteoporosis 

CHD 

gastroparesis 

post hepatectomy 

R484 

phase III / 

registration 

(Bonviva) osteoporosis 

R450 (alpha 1 agonist) SUI 

R698 (Fuzeon) HIV 

R483 

(insulin sensitizer) 


R1415 (Tarceva) oncology 

R667 emphysema 

R1549 

(Pemtumomab) 

ovarian cancer 

R673 

(NK1) 

depression/anxiety 

Gen (Avastin) oncology 

R724 (T-1249) HIV 

Gen 

Raptiva 

R744 

(next generation 

anemia treatment) 

Gen 

Xolair 

R1124 

emesis 

Chu 

(Antevas) subarachnoid 

haemorrhage 

R1273 solid tumors 

Roche managed 

participation through 

Genentech 

participation through 

Chugai 

opt-in opportunities 

Antisoma (At) 

Axovan (Ax) 

Basilea (B) 

Speedel (S) 

r 

51


An improved pipeline 

30 

25 

20 

15 

10 

5 

19 

12 12 

0 

phase I phase II phase III 

Q1 '02 Q1 '03 

Roche R&D pipeline consists of 65 NME's in Q1 '03 

vs. 47 NME's in Q1 '02 

25 

8 

8 

r 

52

Our growth objectives for 2003 and beyond 

Pharmaceuticals 

2003 

• Double-digit sales growth* 

• Double-digit operating profit growth* 

... and beyond 

• Operating profit margin: towards 25 % by end of 2004 

* local currency 

r 

53

Outlook 

2003 

• Double-digit growth in sales and operating profit for Group, and both the 

Pharmaceuticals and Diagnostics division in local currencies; each above 

market growth 

• Stable operating profit margins for the Group as a whole. 

Tax rate around 29 % 

... and after 

r 

• Improved operating profit margins: Group > 20 % in medium term; 

Pharmaceuticals approaching 25 % by the end of 2004; Diagnostics slightly 

better than 20 % by 2006 

• By the end of 2004 conditions in place for a balanced financial income 

54

+1 - Roche

Create successful ePaper yourself

Delete template?

Save as template?