Basel, Switzerland (GenevaLunch) – Markets reacted with disappointment to Pharmaceutical giant Roche’s 2008 results, published 4 February. The group’s earnings fell by 5% due to a strong Swiss franc and lower net financial income, despite group sales rising by 10% in local currencies and group profits up 4% in local currencies, to CHF13.9 billion.
The company’s shares fell 7.2% on a SMI (Swiss blue chip stocks) market that was down 0.4% in the first 80 minutes of trading Wednesday morning. TSR reports analysts as saying the results are mixed: while turnover was in line with forecasts, earnings were lower. Second quarter profits were down 14%, adding to investor nervousness about the company’s outlook.
Roche 30 January launched a surprise hostile bid for Genentech, its longtime US partner, and relations between the two appeared to sour, the New York Times reported. Roche has had a majority stake in the US drugmaker since 1990 and Genentech has developed Roche’s three bestselling drugs.
- Roche press release
- Related, Le Temps, Fre
- Bloomberg points to second semester profits fall, causing the company’s shares to “record their worst drop in 11 years”
- Roche on the SMI, Le Temps, updated every 15 minutes
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News story, GenevaLunch, 4 February 2009.
Filed under: Business
Tags: 2008 results, Basel, Business, Genentech, Roche, shares down, Swiss pharmaceuticals
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