Roche’s 2024 Strategy Seeks to Fight Low Growth with Pipeline Cuts, M&A
01 Feb 2024
AcquisitionFinancial StatementPhase 2IPODrug Approval
Pictured: Roche Tower at headquarters in Switzerland/iStock, olli0815
Despite a sharp COVID-19 sales decline, Roche reported 1% group sales growth for 2023 while predicting mid-single digit sales growth in 2024, according to the company’s financial results announced on Thursday.
The Swiss pharma and diagnostics company is working to overcome weakened demand for its COVID-19 products and currency headwinds by culling its pipeline and looking to acquisitions and collaborations for de-risked assets with “significant potential.”
Excluding COVID-19 medicine Ronapreve, pharma sales increased by 9% from what the company called “ongoing high demand” for its newer medicines like Vabysmo. The eye disease medicine launched in 2022 and has become one of Roche’s best sellers, bringing in $2.78 billion in sales last year.
At the same time, Roche said it has cut several early- to mid-stage candidates from its R&D pipeline—five from neurology and three in oncology/hematology—according to Thursdays full-year 2023 presentation, some of which was previously announced.
Roche’s Genentech ended its longstanding collaboration with AC Immune in January 2024, handing back two Alzheimer’s assets. Study results were not strong enough to merit continuation. In addition, Phase II assets for PTSD and Dup15q syndrome were cut. Both had previously failed in trials for other indications.
In cancer indications, a CD40 agonist for solid tumors was axed along with two bispecific antibodies for glioblastoma and solid tumors.
Despite other cuts earlier in 2023, Roche is still growing its pipeline with 146 new molecular entities and asset expansions. Partnerships and acquisitions have become a focal point to focus on de-risked assets with significant potential, according to the company.
New assets were added to the pipeline from Roche’s attempt to target the lucrative weight loss market. Its merger with Carmot Therapeutics, announced in December 2023, provided Roche with access to three GLP-1 receptor agonists with “best-in-class potential to treat obesity.”
Roche has already made three deals in 2024 totaling a potential $4 billion in payouts, if milestones are met. MediLink Therapeutics scored $50 million for a next-gen ADC for solid tumors. Remix Therapeutics received $30 million for RNA modulating small molecules. Roche also dropped $66 million upfront to MOMA Therapeutics to find new drugs targeting cancer cell growth and survival.
Roche’s oncology trio—Avastin, Herceptin and Rituxan—have faced a growing loss of sales to biosimilar competition, forcing the company to look to newer drugs to counter the losses. In the earnings presentation, CEO Thomas Schinecker reiterated that Roche is looking to acquire drug assets in all states of development.
Kate Goodwin is a freelance life science writer based in Des Moines, Iowa. She can be reached at kate.goodwin@biospace.com and on LinkedIn.
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