Taking into account the growth pressure on the pharmaceutical industry, the consistent threat of generics and the performance of big pharmaceutical firms in recent quarters, Roche’s results can be termed as impressive and well rounded. Excluding the impact of currency movements, the company’s pharmaceutical business has registered 6% to 8% growth in all key geographies except Europe. Additionally, its diagnostics business is doing reasonably well and has grown faster (on a constant currency basis) compared to J&J’s this year. Multiple acquisitions in this arena are likely to help Roche sustain the growth in the longer run. For us, Roche’s earnings report has strengthened our belief that the company is well positioned to combat the threat of biosimilars, and its continued focus on pipeline innovation will help it maintain leadership in Oncology.
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