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Introduction & Market Context
Roche Holding AG (SIX:ROG) presented its third-quarter 2025 results on October 23, showcasing solid growth driven primarily by its pharmaceutical division. The Swiss healthcare giant reported a 7% increase in group sales at constant exchange rates (CER), with pharmaceuticals rising 9% while diagnostics grew at a more modest 1% rate.
The company’s performance comes amid ongoing currency headwinds and healthcare pricing reforms in China that have particularly impacted its diagnostics business. Despite these challenges, Roche has raised its full-year guidance, reflecting confidence in its product portfolio and pipeline progress.
As shown in the following chart of group sales performance, Roche has maintained consistent growth following the pandemic-related fluctuations:
Quarterly Performance Highlights
Roche’s group sales reached CHF 45.9 billion for the first nine months of 2025, representing a 7% increase at CER. The pharmaceuticals division was the primary growth driver, with sales of CHF 35.6 billion (+9% CER), while diagnostics contributed CHF 10.3 billion (+1% CER).
The following table highlights the strong performance of the pharmaceutical division compared to diagnostics:
Geographically, pharmaceutical sales showed robust growth across all regions, with particularly strong performance in international markets:
The company’s portfolio of key growth drivers remains well-diversified across therapeutic areas. As illustrated in the following breakdown, newer products are successfully offsetting the impact of biosimilar competition on established medications:
Currency fluctuations have significantly impacted reported results, with a 4.7% negative effect on sales growth. The US dollar, Chinese yuan, and several Latin American currencies were the primary contributors to this headwind:
Pipeline Advancements
A key highlight of Roche’s presentation was the significant progress in its pharmaceutical pipeline, with 10 new molecular entities (NMEs) advancing to Phase III trials in 2025. The company emphasized that its portfolio value has increased by 27%, with average peak sales per pipeline project rising by 57%.
The following slide details the 10 molecules that have progressed to Phase III trials, spanning multiple therapeutic areas:
Roche’s 2025 pharmaceutical pipeline now includes up to 19 NMEs with launch potential by 2030, categorized by their expected peak sales potential:
Among the notable pipeline advancements, Roche presented positive Phase III results for giredestrant in breast cancer. The trial demonstrated significant improvement in progression-free survival compared to standard of care:
Another promising candidate is pegozafermin, which Roche positioned as a potential best-in-disease therapy for metabolic dysfunction-associated steatohepatitis (MASH), further strengthening the company’s cardiovascular, renal, and metabolism (CVRM) portfolio:
Strategic Initiatives
Roche highlighted its strategic acquisition of 89bio and partnership with Hansoh as key business development moves to enhance its pipeline. The 89bio acquisition has particularly strengthened Roche’s position in the CVRM space, adding pegozafermin to its portfolio.
In diagnostics, the company showcased AXELIOS 1, described as "the world’s fastest whole human genome sequencing to date," demonstrating Roche’s continued innovation in this space:
Regional performance in diagnostics varied significantly, with strong growth in North America, EMEA, and Latin America offset by a 15% decline in Asia Pacific, primarily due to healthcare pricing reforms in China:
Forward-Looking Statements
Based on its strong performance, Roche has raised its full-year 2025 guidance. The company now expects the impact from loss of exclusivity to be CHF 0.8 billion (down from the previous estimate of CHF 1.0 billion), and has upgraded its core EPS growth forecast:
Looking ahead, Roche anticipates significant news flow for the remainder of 2025, with multiple regulatory submissions, approvals, and pivotal Phase III readouts expected across its portfolio. The company’s long-term strategy focuses on leveraging its current growth drivers while accelerating pipeline rejuvenation to deliver sustainable future growth.
CEO Thomas Schinecker expressed confidence in the company’s robust pipeline during the earnings call, stating: "We have now moved 10 molecules into Phase 3. We’ve really rebuilt and shaped our late-stage pipeline." He also highlighted the potential of giredestrant, noting: "Anything now is going to be on top. I think you have more upsides than downsides when you look at Giredestrant."
Despite the positive outlook, Roche faces ongoing challenges from currency fluctuations, which are expected to reduce core EPS by 8%, as well as continued competitive pressures in key therapeutic areas. Nevertheless, the company’s diversified portfolio and advancing pipeline position it well for continued growth in the coming years.
Full presentation:
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