What to watch in Roche earnings: biosimilars

Swiss pharma giant Roche Holding AG (ROG.EB) reports its first-half results on Thursday at 0500 GMT. Here’s what you need to know:

SALES: According to a FactSet consensus estimate, Roche is expected to post sales of 14.17 billion Swiss francs ($14.26 billion).


PROFITABILITY: Markets expect a slight decline due to erosion from major drugs, says Bruno Bulic of Baader Helvea. Rituxan, a Roche blockbuster, declined 40% in its first quarter. In Europe, that erosion was mainly driven by biosimilars, notes Mr. Bulic.

SALES PERFORMANCE: The market will closely follow developments in that sector and will positively react to anything that is above expectations.

HERCEPTIN: Erosion for the cancer drug might have appeared in the second quarter, and markets are expecting an impact.

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