These include Roche's trio of drugs for treating the HER2-positive form of breast cancer, Gazyva for chronic lymphocytic leukemia, Actemra for rheumatoid arthritis, and Esbriet for the lung disease idiopathic pulmonary fibrosis.
The initial uptake of cancer immunotherapy Tecentriq has also been strong.
Roche's overall pharmaceuticals sales rose to 9.68B francs from 9.34B, while diagnostics revenues grew to 2.8B francs from 2.6B francs.
Roche reiterated that it expects FY sales to grow at a low- to mid-single-digit range at constant exchange rates and for core EPS to grow faster than revenues.
Roche also confirmed that it expects to further increase its dividend in Swiss francs.
Clovis (NASDAQ:CLVS) has always been considered an acquisition target with a “long list” of potential suitors including Eli Lilly (NYSE:LLY), Merck & Co. (NYSE:MRK) , and Roche, Janney tells Bloomberg in an interview.
CEO Patrick Mahaffy has sold other companies including Pharmion, NeXstar Pharmaceuticals.
Clovis closed +12.7% and is up another 7.7% AH. Earlier today the stock jumped when Gilead (NASDAQ:GILD) said it is looking for cancer deals.
Roche (OTCQX:RHHBY) has struck a deal with U.K. molecular diagnostics firm Lumora to buy "products associated with [Lumora's] unique, patent-protected Heat Elution technology for nucleic acid purification of multiple sample types including challenging formalin-fixed paraffin-embedded (FFPE) tumor samples." Terms are undisclosed.
Roche: "Today, nucleic acid purification technology from specimens including formalin-fixed tissues can be cumbersome and inefficient. Lumora's highly differentiated proprietary methodology will enable simple and automated nucleic acid isolation in minutes instead of hours. In addition, the technology is environmentally friendly and can be applied to process a wide variety of sample types including whole blood, fecal matter, sputum, FFPE tissue and buccal swabs."
The drug giant adds it plans to explore integrating Lumora's technology into its sequencing workflow solution.
Missing analysts’ forecasts, Roche (OTCQX:RHHBY) said net income attributable to shareholders fell to 9.33B francs ($10.34B) from 11.16B francs a year earlier, despite rising sales of its cancer treatments.
The company said it was hit by impairments, restructuring costs and debt restructuring.
Roche expects sales this year to grow in low-to-mid single digits range, while core earnings per share should grow more than sales.
Roche (OTCQX:RHHBY) is acquiring a majority of Foundation Medicine (NASDAQ:FMI) for more than $1B, by buying a combination of outstanding and newly issued shares for a 52.4%-56.3% stake on a fully diluted basis.
Foundation is the leader in the growing area of sequencing the genes of tumor samples, looking for mutations that can help predict which drug will be most effective for a particular patient.
The FDA has given emergency approval for Roche's (OTCQX:RHHBY) LightMix Ebola Zaire rRT-PCR Test, helping health care authorities fight the current outbreak of the deadly disease.
The test can generate results in about three hours and would allow "health-care professionals to quickly detect the virus and start patient treatment as early as possible," said Roland Diggelman, chief operating officer at Roche’s diagnostics division.
Roche (OTCQX:RHHBY, OTCPK:RHHBF) will pay $74/share for InterMune (NASDAQ:ITMN), a 38% premium to its Friday close and 63% higher than Aug. 12 when news of a potential sale emerged.
The deal gives Roche access to pirfenidone, which targets idiopathic pulmonary fibrosis, a disease that causes tissue deep in the lungs to become thick and scarred over time. Analysts predict pirfenidone will generate $1B in global sales by 2019.
Pirfenidone joins Roche’s stable of pulmonary treatments, including Pulmozyme for cystic fibrosis, Xolair for asthma, and in-development asthma drug lebrikizumab. Roche plans to speed pirfenidone’s U.S. start-up and help get insurance coverage for the medicine.
Roche (OTCQX:RHHBY) plans to continue its strategy of focusing on smaller acquisitions and partnerships rather than the big M&A deals that have been spreading across the healthcare industry.
"We're sticking to our previous strategy. This includes targeted, small acquisitions and partnerships like the ones we have carried out in recent months," says CEO Severin Schwan. "We have to weigh up internal and external opportunities. It can't be that we have to put important internal opportunities on ice because of too-expensive acquisitions."
The company has acquired a few small diagnostic companies this year including the recent purchase of Seragon Pharmaceuticals and Genia Technologies.
Roche (RHHBY) has announced it will buy Seragon, a breast cancer research company, for $725M. The company may pay up to another $1B based on future performance. Seragon was spun out from Aragon Pharmaceuticals last year, when the latter was purchased for $650M by Johnson & Johnson.
Seragon is the second major acquisition for Roche in the last two months. The company bought Genia Technologies for up to $350M in in June.