Benzinga | Jul 22, 2021 07:07AM EDT

Rebound In COVID-19 Tests Lift Roche's Half-Year Sales, Oncology Still Hit By Biosimilars, Pandemic

* Roche Holding AG's (OTC:RHHBY) 1H 2021 sales increased by 8% Y/Y at constant exchange rates (CER) to CHF 30.7 billion as peak demand for COVID-19 tests helped the Company rebound from a weak start to the year.

* Diagnostics division sales grew 51% CER to around CHF 9 billion due to demand for COVID tests and strong momentum in routine testing, compensating for a 3% CER decline in pharmaceuticals sales.

* The portfolio of COVID-19 tests contributed to total sales of CHF 2.5 billion (CHF 0.7 billion in 2020); the demand for COVID-19 tests is likely to decrease in the second half of 2021, Roche said.

* However, drug sales returned to growth in the second quarter as new medicines performed well.

* Roche's oncology business had still not returned to pre-pandemic levels, as sales decreased by 15% to CHF 10 billion due to the biosimilar competition for MabThera/Rituxan, Herceptin, and Avastin, partially compensated by the new products Tecentriq, Kadcyla, and Alecensa.

* Core earnings per share rose 6% to CHF 10.56.

* Roche maintained its forecast for 2021 sales to grow at a low- to the mid-single-digit rate at constant exchange rates, with core earnings per share growing about the same as sales.

* It expects to increase its dividend, it added.

* Price Action: RHHBY shares closed at $48.55 on Wednesday.