NEW YORK – While Roche saw a 1 percent decline in full-year 2024 diagnostics sales year over year, the base business within the division rose 8 percent.
Overall, Roche reported CHF 60.50 billion ($66.66 billion) in revenues for the year, up 3 percent from CHF 58.72 billion in 2023 and up 7 percent at constant exchange rates, the firm said. Excluding COVID-19 products, sales increased 9 percent at constant exchange rates.
The pharmaceuticals division had CHF 46.17 billion in 2024 revenues, up 4 percent from CHF 44.27 billion in 2023 and up 8 percent at constant exchange rates.
Meanwhile, Roche Diagnostics had sales of CHF 14.32 billion in 2024, down 1 percent from CHF 14.45 billion in 2023 but up 4 percent at constant exchange rates. The division's base business was up 8 percent at constant exchange rates, led by increased demand for immunodiagnostic products and higher sales of clinical chemistry tests, advancing staining solutions, and companion diagnostics, Roche said. COVID-19 testing sales were CHF 200 million compared to CHF 800 million in 2023.
On a call to discuss the firm's financial results, Roche CEO Thomas Schinecker said that 2024 was the last year the impact of COVID-19 sales reductions would be felt, as COVID-19 product sales were down CHF 1.1 billion. CFO Alan Hippe noted that COVID-19 diagnostic sales declined by CHF 552 million in 2024.
For the fourth quarter, diagnostics sales fell 1 percent to CHF 3.60 billion from CHF 3.77 billion in the same quarter in 2023. Total sales in the fourth quarter of 2024 were CHF 15.51 billion, up 9 percent from CHF 14.66 billion in Q4 2023.
Within the diagnostics division, Molecular Lab revenues rose 1 percent to CHF 2.59 billion for full-year 2024 from CHF 2.57 billion in 2023 and made up 18 percent of total diagnostics sales. Roche Diagnostics CEO Matt Sause said that the Molecular Lab business growth was driven by strong sales in the virology base business and the donor screening and blood screening business, partially offset by lower PCR laboratory-based COVID-19 testing sales. Excluding COVID-19 PCR testing, Molecular Lab revenues grew by 8 percent.
In 2024, Roche Diagnostics launched the updated version of its high-throughput Cobas 6800/8800 instruments, which Sause said will "further extend our competitive lead in the molecular lab" and will be an "engine for our growth into the future." The update is fully compatible with Roche's new Temperature-Activated Generation of Signal (TAGS) technology and has improved throughput and increased testing flexibility, he added.
Sause added that the firm has plans to launch a Cobas BV/CV test for bacterial vaginosis and candida vaginitis in 2025, helping to round out the molecular STI testing menu.
Core Lab revenues rose 3 percent to CHF 8.00 billion from CHF 7.75 billion in 2023 and contributed 56 percent to total diagnostics sales.
During the fourth quarter, Roche launched its automated Cobas I 601 mass spectrometry system in Europe. Sause said the firm intends to launch more than 40 new assays in the first wave of test launches for the system and aims to "establish and shape the [in vitro diagnostic] market for automated, simplified, end-to-end mass spectrometry testing and drive a market expansion."
The firm's goal is to reach CHF 1.0 billion in mass spec sales by 2030, he noted.
Sause also provided a brief overview of clinical data on the firm's Elecsys Amyloid Plasma Panel. The blood-based rule-out test for Alzheimer's showed "excellent clinical performance," including a negative predictive value of more than 90 percent independent of comorbidities and demographics, in a study that included 492 patients with suspected cognitive impairment.
Near Patient Care revenues dropped 21 percent to CHF 2.17 billion from CHF 2.75 billion in the previous year and contributed 15 percent to total diagnostics division sales. Sause noted that the decline was partially due to lower COVID-19 rapid antigen testing and the steady decline of the blood glucose monitoring business due to the market shift to continuous glucose monitoring.
Schinecker noted that Roche aims to become the global market leader in near patient testing and has multiple growth drivers in the business, including the LumiraDx testing platform it acquired in 2024 and the Cobas Liat menu expansion into sexually transmitted infections. The company received 510(k) clearance from the US Food and Drug Administration last week for its chlamydia, gonorrhea, and mycoplasma test on the Cobas Liat platform.
The firm is also developing the Cobas Vital platform for blood gas testing and the Cobas Sense for point-of-care immunoassay testing. According to a presentation from Roche, the Cobas Sense platform will enable point-of-care and core laboratory interoperable testing for high-sensitivity troponin testing. The platform will also be used for testing for critical conditions like cardiac, sepsis, and traumatic brain injury.
"We are going to continuously invest into the Near Patient Care segment and we will continue to build out that segment," Schinecker said.
Pathology Lab revenues grew 13 percent to CHF 1.56 billion in 2024 from 1.39 billion in 2023 and contributed 11 percent to total diagnostics sales. Sause said that Roche plans to update its digital pathology platform to provide enhanced image management and improved interoperability with third-party slide scanners.
Sause noted that China's volume-based procurement program, as well as reductions in reimbursement for immunoassays across the country, had an impact on the diagnostics business. While the Diagnostics business has a "consistent ambition" to grow in the mid- to high-single digit percent range, in 2025 it aims to grow in the low- to mid-single digit percent range due to China headwinds.
"China is still a critical market for us and we continue to be the market leader," Sause said.
Roche's 2024 net income was CHF 9.19 billion compared to CHF 12.36 billion a year ago. Core EPS for 2024 was CHF 18.80 per share compared to CHF 18.57 per share in 2023.
As of Dec. 31, 2024, Roche had CHF 6.98 billion in cash and cash equivalents.
For 2025, the company expects sales to grow in the mid-single digit range at constant exchange rates. Core earnings per share are expected to develop in the high-single digit range.