Roche Faces Q3 Challenges Amid Currency Fluctuations, But Remains Optimistic for Future Growth

Swiss pharmaceutical giant Roche reported a softer-than-expected third quarter performance, primarily due to exchange rate fluctuations and slower sales growth for key medicines. Despite these challenges, the company maintains a positive outlook for its long-term growth potential and resilience in the face of upcoming patent expirations.

Q3 Financial Performance and Currency Impact

Roche's third-quarter group sales declined by just over 1% compared to the same period in 2024, totaling 14.9 billion Swiss francs (approximately $19 billion). The company's pharmaceutical division also experienced a slight sales dip during this period. Chief Financial Officer Alan Hippe attributed much of this downturn to volatile exchange rates, particularly the weakening of the U.S. dollar against the Swiss franc.

The currency fluctuations have prompted Roche to forecast a -5% impact on sales and a -8% impact on core earnings per share for the year. With approximately 48% of its sales generated in the U.S., Roche is particularly vulnerable to these exchange rate shifts. The U.S. dollar has lost about 13% of its value against the Swiss franc so far this year.

Key Product Performance and Strategy Adjustments

Despite the challenging quarter, Roche reported strong year-to-date performance for several of its leading products:

• Phesgo: Sales grew 54% year-over-year in the first nine months of 2025, reaching 1.8 billion Swiss francs. Global conversion rates to Phesgo from its predecessor medicines climbed to 51% in Q3.

• Hemlibra: While Q3 sales dropped by about 3% compared to 2024, Roche has raised its 2025 sales growth expectations for the hemophilia A treatment to 10%, up from a previous mid-single-digit estimate.

• Ocrevus: The multiple sclerosis drug saw a 1% sales decline in Q3, with revenues of 1.7 billion francs. Roche is working to overcome logistical challenges in converting patients to the new subcutaneous formulation, Ocrevus Zunovo.

• Vabysmo: Roche has downgraded its sales expectations for the ophthalmology drug from 20% growth to 15% due to market contraction in the U.S. However, the company notes continued market share gains for Vabysmo in anti-VEGF treatments globally.

U.S. Policy Considerations and Future Outlook

Roche executives addressed investor concerns regarding potential drug pricing negotiations with the U.S. government and pharmaceutical import tariffs. CEO Thomas Schinecker confirmed ongoing discussions with the U.S. government throughout the year, including talks about the company's recently launched direct-to-patient program for its influenza treatment Xofluza.

Schinecker expressed confidence in Roche's position regarding potential import tariffs, citing the company's 13 manufacturing sites in the U.S. and recent efforts to improve production efficiency.

Looking ahead, Roche believes it is well-positioned to navigate the challenges of biosimilar erosion in the coming years. Schinecker stated, "We do believe that we're one of the companies which have less biosimilar erosion. If you look at the next couple of years, we do believe we can compensate that with the medicines that we have in hand, and that we will continue to grow at least until '28 and thereafter."