Innovation and growth

Transcription

1 Innovation and growth Alan Hippe, CFO Roche Group JP Morgan Conference, January 2014

2 Performance update Industry in context Building pillars of innovation Building pillars of growth Summary 2

3 Group: Continued strong sales growth 10% 8% 6% 4% 2% 0% -2% 0% 0% 1% 4% 2% 6% 4% 6% 6% 4% 8% 6% Excluding 340B sales reserves release -4% -6% -3% Q3 10 Q4 10-5% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 All values at constant exchange rates 3

4 Group growth supported by all regions 20% 15% 10% 5% 0% -5% -10% -15% 14% 9% 7% 4% 3% US US excl. 340B International Japan Europe -20% Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 All values at constant exchange rates 4

5 2011 to present: Strong pipeline progression 31 successful late-stage trials Zelboraf BRIM 3 Erivedge ERIVANCE Onartuzumab NSCLC Herceptin SC HANNAH Lucentis HARBOR Avastin mcrc TML Dalcetrapib dal-outcomes Herceptin HERA2 Avastin Cervical Aleglitazar AleCardio Avastin OCEANS Actemra ACT-Ray Perjeta CLEOPATRA Actemra BUILDER I/II Actemra CHERISH MabThera/ Rituxan SC SABRINA Actemra BREVACTA Avastin AVAGLIO Gazyva CLL11 lampalizumab MAHALO Tarceva EURTAC Lucentis RISE Kadcyla Phase II Avastin+ pemetrexed AVAPERL Avastin+ Herceptin AVEREL Actemra ADACTA Kadcyla EMILIA Xolair ASTERIA Actemra SUMMACTA onartuzumab T-N BC etrolizumab IBD Kadcyla TH3RESA Lucentis RIDE Lebrikizumab MILLY Gazyva GAUSS Avastin AURELIA Avastin BEATRICE Actemra FUNCTION Xolair GLACIAL Avastin BETH Positive trials New molecular entity 5

6 2013: A strong year - 8 ready to move into late stage Oncology Anti-CD79b or 22 ADC 1 PI3K (2) 1 Moved to phase III PI3K (1) 1 alectinib (ALKi) NSCLC Bcl-2i (GDC 0199) hem. cancers anti-pdl1 solid tumours cobimetinib (MEKi) melanoma onartuzumab (MetMAb) NSCLC Gazyva (GA101) EU CLL Immunology / Ophthalmology lampalizumab geographic atrophy etrolizumab UC and CD lebrikizumab asthma Neuroscience gantenerumab 2 Alzheimer s ocrelizumab MS bitopertin schizophrenia 6 1 Phase III decision pending; 2 Phase II/III label enabling

7 Roche: Increase in operating profit & margin Group core operating profit (CHF bn) and margin 40.7% 35.0% 37.2% 38.1% 38.5% +10% at CER CER=Constant Exchange Rates HY 2009 HY 2010 HY 2011 HY 2012 HY

8 Premium for innovation Roche strategy: Focused on medically differentiated therapies Pharma Dia Regulators: Optimised benefit / risk ratio Focus Payors: Optimised benefit / cost ratio MedTech Generics OTC Differentiation 8

9 Performance update Industry in context Building pillars of innovation Building pillars of growth Summary 9

10 Access and pricing Dynamics stratified into 3 geographic clusters Developed world ex-us (37% of world market, 10% of population) Payers determine price Emerging Markets (28% of world market, 85% of population) Spend limited by GDP per capita United States (35% of world market, 5% of pop) Free, stable pricing 10

11 Access Access and pricing Dynamics stratified into 3 geographic clusters High Developed world United States United States (35% of world market, 5% of pop) Free, stable pricing Japan Germany France Developed world ex-us (37% of world market, 10% of population) Payers determine price UK Italy Emerging Markets (28% of world market, 85% of population) Spend limited by GDP per capita Low Russia Turkey Brazil Mexico China India Emerging markets Low Pricing flexibility High 11

12 Europe: Economies and pricing important value drivers for Pharma Example: Pharma market growth in Europe 7% High GDP growth: increasing pharma spend GDP challenges: austerity measures Stabilized environment? 6% 5% 6% 5% Limits to public access will continue Recognition and rewards for innovation 3% 2% 1% % Source: IMS 12

13 Access is the first challenge in Emerging Markets Despite considerable progress made In constant CHF Healthcare spending/capita 3'633 2' EU5 Brazil Russia India China Source: WHO National Health Accounts; IMS Market Prognosis 13

14 Developed World ex-us Need for tailored systems Today Future Pack based pricing Value based pricing Episode-of-care based Undifferentiated $$ by vial + Combinations Indication based Need for patient based information 14

15 Performance update Industry in context Building pillars of innovation Building pillars of growth Summary 15

16 Roche: R&D well balanced from a risk & disease point of view Roche budget trends Oncology Metabolism CNS Inflammation Virology 0% 5% 10% 15% 20% 25% 30% Industry average probability of success Phase I to Registration Source: Bernstein Equity Research, Tufts University and Roche analysis 16

17 Roche: A leading portfolio Launched Oncology 10 drugs launched 4 Phase III Avastin MabThera Herceptin Xeloda Tarceva Zelboraf Erivedge Perjeta Kadcyla Gazyva Immunology/ Inflammation 4 drugs launched 3 Phase III Mabthera RA Actemra Lucentis Xolair Neuroscience 3 Phase III Phase III MetMab (onartuzumab) anti-pdl1 BCL2i cobimetinib (MEKi) lebrikizumab etrolizumab 1 lampalizumab 2 bitopertin ocrelizumab gantenerumab Phase II 10 phase II 2 phase II 4 phase II Strong and growing Strongly emerging Earlier stage 1 FPI expected 1H 2014; 2 Phase III decision pending 17

18 Performance update Industry in context Building pillars of innovation Building pillars of growth Summary 18

19 M E D I C A L V A L U E Example: Her2 franchise Replace & Extend Extend Perjeta Replace Perjeta Kadcyla Kadcyla Herceptin + chemo Lapatinib + chemo Herceptin + chemo Illustrative EMILIA / MARIANNE study CLEOPATRA study MARIANNE study 19

20 M E D I C A L V A L U E Example: Hematology franchise Replace & Extend Replace Extend BCL2 BCL2 ADC CD22 ADC CD79b ADC CD22 ADC CD79b Other molecules Gazyva combo(s) Other molecules Gazyva MabThera/ Rituxan combos Chemo MabThera/ Rituxan Illustrative CLL11 study, etc. E.g. ROMULUS study Our vision 20

21 Example: Entering new Therapeutic Areas Lampalizumab in Geographic Atrophy (GA) AMD (Drusen) Extrafoveal GA Advanced GA 21

22 Lampalizumab: Anti-factor D High efficacy in subpopulation with exploratory biomarker GA progression rate decreased by 44% at 18 months. In the subset of patients with better vision (20/50 to 20/100), progression was reduced by 54% All comers: 20.4 % reduction rate at 18 months Safety No unexpected or unmanageable SAEs Intraocular inflammation AE rates and intraocular pressure elevation AE rates were consistent with Lucentis rates in wamd MAHALO study, presented at ASRS 2013, SAE= Serious Adverse Events 22

23 Performance up-date Industry in context Building pillars of innovation and growth Summary 23

24 Summary: Focus on innovation and growth 1 Strategic focus on innovation and driving Personalised Healthcare 2 Strong growth in Emerging Markets facilitated by tailored access models 3 Leading product pipeline providing value for the future 24

25 Doing now what patients need next 25