Roche Holding's full-year profit missed forecasts due to disappointing sales of key cancer drugs, but the Swiss drugmaker confirmed its 2010 outlook.
Roche said today core earnings per share rose 10 per cent to 12.19 Swiss francs ($11.52), narrowly missing the average forecast of 12.33 in a Reuters poll after big sellers Avastin, MabThera and Herceptin netted less than expected.
The world's largest maker of cancer drugs stuck to its core earnings per share guidance for double-digit growth this year and is aiming for mid-single digit sales growth at both the group as a whole and its drugs unit.
Many analysts see Roche and its local Swiss rival Novartis as the stars of the drugs sector, having focused on developing promising new drugs rather than cutting costs as a way to combat looming patent losses.
Roche chief executive Severin Schwan dismissed speculation Novartis could sell its stake in its rival to help pay for acquiring eye care group Alcon, telling CNBC the talk was "pure speculation".
Roche stock was indicated to open down 2 per cent, according to premarket data from bank Clariden Leu.
"Our first reaction is of slightly disappointing results. FY09 numbers were slightly light and double-digit core EPS growth guidance was as expected," analysts at Deutsche Bank said in a note.
Sector investors will now look to earnings from U.S. group Pfizer, due later in the session, for more clues on how drugmakers hope to overcome tough industry fundamentals, which also include uncertainties over US health care reform.
Reuters