BIG PHARMA EARNINGS WATCH: ROCHE AND SANOFI

Big Pharma Giants Continue Reporting Expectation-Beating Q3 Earnings After Maintaining Price Hiking Business-as-Usual in 2024

Last week, two brand name pharmaceutical giants, Roche, and Sanofi, reported third quarter earnings that bested Wall Street analysts’ expectations, with each drug maker increasing their guidance for the year. Both Big Pharma companies reported the blockbuster earnings after hiking drug prices on American patients earlier this year.

Roche

• Roche reported earnings for the third quarter, topping Wall Street earnings estimates.
• The Big Pharma company’s sales rose nine percent in the third quarter to $17.49 billion, aided by growth in both its pharmaceutical and diagnostics sales divisions, representing nine percent year-over-year growth.
• Roche’s top-performing drug for Q3 was its multiple sclerosis treatment Ocrevus, which grew by 11 percent, bringing in nearly $2 billion in sales.
• Roche’s popular eye medication, Vabysmo, generated $1.2 billion in the third quarter – a surge of 59 percent year-over-year. The dramatic increase is attributed to altering roughly 80 percent of prescribed Vabysmo prescriptions in the U.S. from vials to pre-filled syringes. Roche expects sales of the drug to continue to increase.
• The Big Pharma company expects continued growth in 2024.

Sanofi

• Sanofi reported strong third quarter earnings that beat Wall Street estimates. 
• The drug maker reported sales of more than $14.5 billion, boosted by an earlier-than-expected start of the respiratory and flu vaccination season.
• Sanofi’s sales rose 12 percent in the third quarter.
• Revenue of the Big Pharma giant’s recently launched respiratory syncytial virus (RSV) drug Beyfortus far exceeded analysts’ expectations, generating $700 million in sales – a 381 percent year-over-year increase.
• Sanofi’s blockbuster eczema and asthma treatment Dupixent also boosted profits, generating $3.75 billion – an increase of 23.8 percent year-over-year.
• The company’s vaccine division experienced a 25 percent year-over-year growth, bringing in $4.1 billion in Q3.
• The Big Pharma giant expects continued growth.

The strong earnings reported by each Big Pharma company reflects their continued practice of increasing prices on blockbuster drugs within their portfolios, despite a growing crisis of affordability.

Roche

• As sales have climbed, Roche has repeatedly hiked prices on prescription products in its portfolio. Earlier this year, the Big Pharma company increased prices on more than 25 prescription drugs.
• Last year, Roche increased prices on at least 23 prescription drugs in its portfolio.
• In 2022, the brand name drug maker increased prices on more than 30 prescription drugs.
• In 2021, Roche increased prices on at least 19 prescription drugs.
• In the first week of 2020, Roche hiked prices on 11 drugs.
• A report released in late 2019 found that Roche’s price hikes on the popular drug Rituxan were not supported by innovation or improvements and cost U.S. taxpayers $806 million.

Sanofi

• Sanofi started the year by increasing prices on at least 10 prescription drugs, including blockbuster drug Dupixent by six percent.
• Sanofi hiked prices on 24 prescription drugs in 2023.
• Sanofi hiked prices on more than 15 prescription drugs in January 2022 – and engaged in an additional round of price hikes that summer.
• Sanofi is one of three Big Pharma companies that dominate the insulin market and worked in lockstep for decades to increase prices on the life-saving drug, through an egregious practice called “shadow pricing.”

Read more on Q3 earnings from Johnson & Johnson HERE.

Stay tuned as we continue to monitor third quarter earnings calls from brand name drug companies in the coming weeks.

Learn more about solutions to lower prescription drug prices and hold Big Pharma accountable HERE.