Committed to innovation and growth
Alan Hippe, CFO Roche Group
New York , February 2013
Roche strategy: Focused on medically differentiated therapies
Regulators: Pharma Dia Optimised benefit / risk ratio Payors: Focus Optimised benefit / cost ratio
MedTech
Premium for innovation OTC Generics
Differentiation
2 Roche: Operating profit and margin continuously increased
Group core operating profit and margin 37.7% 34.9% 35.6% % of sales 33.0% 33.2% +11%1
17.16 16.27 16.59 15.07 15.15
CHF bn
2008 2009 2010 2011 2012 3 1 At CER=Constant Exchange Rates Roche: Cash flow and margin continuously increased
Group operating free cash flow and margin
% of sales 33.8% 32.1% 32.3% 29.8% 27.1% +10%1
15.7 15.4 14.1 13.7 12.4
CHF bn
2008 2009 2010 2011 2012 4 1 At CER=Constant Exchange Rates R&D productivity differs substantially among players
Average annual 1 NME peak sales (2001-10) $ 710 m Peak Sales 4 x US$ bn (per $1 bn R&D)
Roche
$ 165 m Peak Sales (per $1 bn R&D)
Average annual R&D investment (1997-2006)1 US$ bn
1 Peak sales and R&D calculated pro forma to account for major M&A 5 Source: EvaluatePharma; BCG analysis; Roche analysis Roche: R&D well balanced from a risk & disease point of view
2012 Roche budget
Oncology
Metabolism Inflammation
CNS Virology
0% 5% 10% 15% 20% 25% 30%
Industry average probability of success – Phase 0 to Registration
6 Source: Bernstein Equity Research, Tufts University and Roche analysis Changing the standard of care in HER2 Securing future growth by improving the standard of care
Biosimilars launch (EU)
2nd line Xeloda + lapatinib T-DM1 (EMILIA) mBC
Herceptin Herceptin & Perjeta + 1st line T-DM1 & Perjeta (MARIANNE) mBC + chemo chemo (CLEOPATRA)
Adjuvant Herceptin Herceptin subcutaneous + chemo Herceptin & Perjeta T-DM1 & Perjeta BC + chemo (HannaH) + chemo (APHINITY) + chemo
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Filing timelines
Established standard of care Potential new standard of care Potential future standard of care
7 Changing the standard of care in hematology Different mechanisms of action
Potential filing of first indication
2012 2014 2016 2018 2020
MabThera Rituxan*
GA 101
Bcl-2
Anti-CD22 ADC
Anti-CD79b ADC
8 * Patent expiry in the US: 2018 Best-in-class pipeline 71 NMEs supporting long-term growth
Phase I Phase II Phase III (36 NMEs) (23 NMEs) (9 NMEs)
MDM2 ant solid & hem tumors Bcl-2 inh CLL and NHL EGFR MAb solid tumors onartuzumab (MetMAb) solid tumors HER3 MAb solid tumors ChK1 inh solid tum & lymphoma PI3K inh solid tumors obinutuzumab (GA101) hem. tumors CSF-1R MAb solid tumors PI3K inh solid tumors PI3K/mTOR inh solid & hem tumors MEK inh combo Zelboraf m. melanoma CIF/MEK inh solid tumors ADC metastatic melanoma EGFL7 MAb solid tumors lebrikizumab severe asthma Tweak MAb oncology PI3k inh glioblastoma 2L CD22 ADC heme tumors aleglitazar CV risk reduction in T2D CD44 MAb solid tumors ChK1 inh(2) solid tumors CD79b ADC heme tumors tofogliflozin (SGLT2) type 2 diabetes Ang2-VEGF MAb oncoloy ALK inhibitor NSCLC HER3/EGFR m. epithelial tumors ocrelizumab MS Raf & MEK dual inh solid tumors PI3K inh solid tumors glypican-3 MAb liver cancer bitopertin schizophrenia MEK inh solid tumors WT-1 peptide cancer vaccine etrolizumab ulcerative colitis arbaclofen fragile X syndrome (FXS) IL-17 MAb autoimmune diseases MDM2 ant solid & hem tumors rontalizumab SLE IL-6 MAb RA AKT inhibitor solid tumors quilizumab (M1 prime Mab) asthma PD-L1 MAb solid tumors CIM331RA atopic dermatitis mericitabine HCV Registration Steap 1ADC prostate ca. TLR7 agonist HBV danoprevir HCV (3 NMEs) ADC ovarian ca. GIP/GLP-1 dual ago type 2 diabetes setrobuvir HCV Perjeta (pertuzumab)* HER2+ mBC 1L ADC heme tumors GABRA5 NAM cogn. disorders - CMV Erivedge* advanced BCC ADC multiple myeloma V1 receptor antag autism inclaumab (P selectin Mab) ACS/CVD T-DM1 HER2+ mBC ADC oncology BACE inh Alzheimer’s PCSK9 MAb metabolic diseases PDE inh schizophrenia gantenerumab Alzheimer’s ACE910 hemophilia A MAO-B inh Alzheimer’s mGluR2 antag depression mGluR5 antag TRD crenezumab Alzheimer‘s anti-factor D Fab geograph. atrophy
Oncology CardioMetabolism Immunology Neuroscience Virology Ophthalmology Others 9 As of December 31 2012; * Approved in US, filed in EU 2012: US and Emerging markets driving growth
Pharma Growth vs. market Diagnostics Growth vs. market
Asia- Asia 15% 15% Pacific
Latin 11% Latin America America 15%
CEMAI 8%
North US 7% 3% America
Japan 2% Japan 7%
WE-2% EMEA -1%
All growth rates at CER=Constant Exchange Rates; CEMAI=Central and Eastern Europe, Middle East, Africa, Central Asia, Indian 10 Subcontinent; EMEA=Europe, Middle East and Africa. Source: IMS, company and independent estimates Summary: Focus on innovation and growth
Strategic focus on innovation and driving Personalised 1 Healthcare
Strong growth in US and Emerging Markets; 2 innovative access models
3 Leading product pipeline providing value for the future
11 We Innovate Healthcare