Summary
Roche generates its revenue from sales of pharmaceuticals and diagnostics products across the globe. The company generated $24 billion in pharmaceutical sales in the United States, accounting for 53% of its total pharmaceuticals revenue in 2018. This figure has been on a rise and it grew from 47% to 53% between 2015 and 2018. While Roche's sales in the United States is higher than Merck, it is lower than some of the other pharmaceutical companies, including Johnson & Johnson and AbbVie. In this note we focus on the region-wise breakup of Roche's pharmaceutical revenues, its business model, and revenue trajectory. We also compare the United States as a market for Roche with that for other large pharmaceutical companies.
Roche's Business Model
What Need Does It Serve?
Roche primarily serves the pharmaceuticals and diagnostics products markets. The company discovers, develops, and sells pharmaceutical products globally. Its drugs are used for the treatment of various types of diseases, including cancer, heart-related, and infectious, among others.
Roche is a Swiss healthcare company with a global presence. The firm operates in two main segments: Pharmaceuticals and Diagnostics. The pharmaceutical segment produces drugs in various therapeutic segments, primarily Oncology, Immunology, Neuroscience, Anti-Infectious, and Ophthalmology.
Roche has the largest oncology drug market share in the world with a range of successful products, such as Avastin, Herceptin, and Rituxan. The company also has a leading market position in in-vitro diagnostics. It reports its in vitro diagnostics segment into four categories: Centralized And Point of Care Solutions, Tissue Diagnostics, Molecular Diagnostics, and Diabetes Care.
Who Pays To Roche?
Chain stores (Walgreens, CVS, Rite-Aid, Walmart), clinics, long term care facilities, health maintenance organizations, federal facilities, non-federal institutions, mail order pharmacies, and retail stores.
What Buyers Care About?
PriceSubsidies available in the form of reimbursementsAvailability Any possible side effectsFor Diagnostics, buyers care about Technological innovation, convenience of use, product performance, and service/product warranty.
What Are The Alternatives To Roche?
Within pharmaceuticals, other alternatives are Bristol-Myers Squibb, Johnson & Johnson, Pfizer, Merck, Abbvie, GlaxoSmithKline, and Teva, among others.
Outside of pharmaceuticals, other alternatives are acupuncture, aromatherapy, ayurvedic medicine, chiropractic care, homeopathy, and nutritional counseling, among others.
In Diagnostics, Roche competes with Abbott Labs, Siemens, GE Healthcare, Johnson & Johnson, Novartis, and Hitachi Medical Corp, among others.
Roche's Total Revenue Grew 15% Between 2015 And 2018, And It Can Grow Another 7% By 2020.
Roche's pharmaceuticals sales growth over the recent years was led by Xolair and Actmera, among other drugs. The jump in 2018 sales can be attributed to Ocrevus, which has been the best drug launch for Roche, with sales of $2.4 billion in 2018. In fact, Ocrevus garnered $2.1 billion in sales from United States alone. This explains the jump seen in the United States sales in 2018 in the chart above. Looking forward, the sales growth is expected to slow slightly, as the company's blockbuster drugs face biosimilar competition
. Although the new drugs will likely be able to more than offset the expected declines from older drugs
.
Total Revenues
Change In Revenues
Disagree With Our Forecasts? Create Your Own
1. How to save your forecasts for Roche:
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
With your forecast saved and named, you can see how well you forecast the company's performance at the end of each period and compare your forecasts to hundreds of other Trefis users who came up with their own forecasts.
Lastly, you can share with friends and colleagues to show them how you fared and compare your forecasts to theirs.