Roche YTD September 2007 October 16, 2007

Transcription

1 Roche YTD September 2007 October 16, 2007 October 16,

2 This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as believes, expects, anticipates, projects, intends, should, seeks, estimates, future or similar expressions or by discussion of, among other things, strategy, goals, plans or intentions. Various factors may cause actual results to differ materially in the future from those reflected in forward-looking statements contained in this presentation, among others: 1 pricing and product initiatives of competitors; 2 legislative and regulatory developments and economic conditions; 3 delay or inability in obtaining regulatory approvals or bringing products to market; 4 fluctuations in currency exchange rates and general financial market conditions; 5 uncertainties in the discovery, development or marketing of new products or new uses of existing products, including without limitation negative results of clinical trials or research projects, unexpected side-effects of pipeline or marketed products; 6 increased government pricing pressures; 7 interruptions in production 8 loss of or inability to obtain adequate protection for intellectual property rights; 9 litigation; 10 loss of key executives or other employees; and 11 adverse publicity and news coverage. Any statements regarding earnings per share growth is not a profit forecast and should not be interpreted to mean that Roche s earnings or earnings per share for this year or any subsequent period will necessarily match or exceed the historical published earnings or earnings per share of Roche. For marketed products discussed in this presentation, please see full prescribing information on our website All mentioned trademarks are legally protected 3 Additional information in relation to the offer for Ventana shares and where to find it These materials are for informational purposes only and do not constitute an offer to purchase or a solicitation of an offer to sell Ventana s common stock. The tender offer is being made pursuant to a tender offer statement on schedule TO (including the offer to purchase, letter of transmittal and other related tender offer materials) filed by Roche with the Securities and Exchange Commission (SEC) on June 27, These materials, as they may be amended from time to time, contain important information, including the terms and conditions of the offer, that should be read carefully before any decision is made with respect to the tender offer. Investors and stockholders can obtain a free copy of these materials and other documents filed by Roche with the SEC at the website maintained by the SEC at The tender offer materials may also be obtained for free by contacting the information agent for the tender offer, Mackenzie Partners, at (212) or (800) (toll-free). Additional information can also be found on 4 October 16,

3 Group Dr. Erich Hunziker Chief Financial Officer 5 Continuing excellent growth Over CHF 3.5 billion organic sales added CHF bn % change in USD YTD Sept YTD Sept CHF local growth Pharmaceuticals Diagnostics Roche Group October 16,

4 Group momentum remains strong excluding pandemic Tamiflu sales Excluding Government & corporate pandemic Tamiflu Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD Pharmaceuticals Roche Pharma Genentech Chugai Diagnostics Roche Group Local sales growth rates 2007 vs Growth objectives for 2007 Reaffirming outlook Sales Double-digit sales growth 1 for Roche Group and Pharmaceuticals Division Above-market sales growth in both divisions Core EPS target Core earnings per share growth above sales growth 1 in local currencies barring unforeseen events 8 October 16,

5 Pharmaceuticals Division William M. Burns CEO Roche Pharmaceuticals 9 Q3 2007: Highlights in Pharma Double-digit growth continues YTD strong double-digit growth for Pharma (+14% in local currencies) Q3 sales growth of 12% (excluding pandemic Tamiflu) Major product launches in Europe launched in EU for treatment of advanced lung cancer Mircera launched in EU for renal anemia Major pipeline progress Ocrelizumab to move into phase III in lupus (SLE and LN) Ocrelizumab to move into phase II in multiple sclerosis (RRMS) Pertuzumab phase III in metastatic breast cancer starting soon CETP inhibitor: promising phase IIb data, discussions with health authorities encouraging, decision on phase III within October 16,

6 YTD Sept 2007: Pharma again delivering strong double-digit growth Sales CHF m % change in USD CHF local growth Roche Pharma 14,921 16, Genentech 6,522 7, Chugai 2,469 2, Pharmaceuticals 23,912 27, Pharma: Solid momentum 1 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 MabThera/Rituxan Herceptin NeoRecormon/Epogin Tamiflu CellCept Pegasys Xeloda Tarceva Lucentis Boniva Xenical Xolair Valcyte/Cymevene Nutropin Pulmozyme Kytril Rocephin Neutrogin Activase/TNKase versus previous year in %, local growth 12 October 16,

7 YTD Sept 07: Sales growth two to three times the market Growing share of key growth drivers Local sales growth Key products as % of pharma sales Division Europe North America Latin America Japan 6% 7% 6% 7% 4% 14% 12% 14% 12% 16% Roche IMS YTD July '07 70% 60% 50% 40% 30% 20% 10% 0% 1.3% 2.4% 3.1% 2.9% 2.2% 0.2% 4.4% 4.5% 2.4% 2.9% 1.3% 3.0% 5.4% 5.5% 5.3% 5.7% 6.8% 5.8% 6.5% 6.4% 11.0% 9.6% 8.5% 8.9% 2.8% 5.6% 6.5% 7.4% 11.8% 13.2% 15.5% 15.4% 14.7% 15.1% Bonviva/Boniva Tarceva Xeloda Pegasys Cellcept NeoRecormon/ Epogin/Mircera Herceptin MabThera/ Rituxan 13 Therapeutic Areas Pipeline update 14 October 16,

8 Oncology: Annualised sales of over CHF 18 billion and growing strongly CHF bn 16 YTDSept 07 vs. YTD 06 local growth % 45 % 50 % Europe/RoW US Japan +10 % +15 % +28 % 15 Key products on growth path New indications provide fresh growth opportunities 4 Herceptin 5 MAT sales (CHF bn) Q1-05 Q3-05 Q1-06 Q3-06 Q1-07 Q Q1-02 Q3-02 Q1-03 Q3-03 Q1-04 Q3-04 Q1-05 Q3-05 Q1-06 Q3-06 Q1-07 Q3-07 Tarceva 1.5 MabThera 6 MAT sales (CHF bn) % % 0 Q1-05 Q3-05 Q1-06 Q3-06 Q1-07 Q3-07 Pharma Division sales Roche Pharma sales 0 Q1-02 Q3-02 Q1-03 Q3-03 Q1-04 Q3-04 Q1-05 Q3-05 Q1-06 Q3-06 Q1-07 Q3-07 MAT = Rolling 4 quarter sales at avg. YTD Sept. '07 exchange rates 16 October 16,

9 Oncology: Diversified portfolio of large products Significant growth potential Major brands (CHF bn) YTDSept 07 vs. YTD 06 local growth MabThera Rituxan Herceptin +41 % +17 % +26 % Strong growth in EU/RoW (+23%), driven by increasing adoption in oncology as well as RA Market share in adjuvant BC around 60% for 5 key EU countries, still much lower in RoW Growth driven mostly by increasing use in NSCLC (US), and 1st line mcrc (EU/RoW) Xeloda +18 % Strong growth in US (+19%) and EU/RoW (+17%), gastric cancer rollout (EU) Tarceva +34 % YTD '07 YTD '06 Very strong growth in EU/RoW (+90%), increasing adoption in NSCLC and pancreatic ca Backbone of cancer therapy Number of incident cases per year* 450' ' ' ' ' ' ' '000 50'000 0 *in USA plus top 5 EU countries Breast Prostate Lung Colon and rectum Bladder Non-Hodgkin lymphoma s features remain unique Over 15 cancers tested with VEGF inhibition is broadly applicable in cancer therapy Exclusively targeting VEGF (in contrast to non-specific anti-vegf-r TKIs) Overall good tolerability Preferred partner for combinations Melanoma Stomach Uterus Kidney Leukaemia Pancreas Oral cavity Ovary Liver Brain, nervous system Oesophagus Multiple myeloma Larynx Thyroid Cervix Other pharynx Testis Hodgkin lymphoma Nasopharynx 18 October 16,

10 Oncology: Many market opportunities on the horizon and addressed CRC NSCLC BC HER2+ BC HER2- RCC Adjuvant Approval Trials Xeloda (mono) P3, Xeloda (combo) P3 ; Tarceva Herceptin P3 Herceptin+ (in planning) P3 ; Xeloda Metastatic 1st line Approval Trials, Xeloda (mono) Filed (EU), Xeloda (EU,US) line ext with oxaliplatin P3 + Tarceva, Tarceva maint. Herceptin, (EU) P3 Herceptin+ ; Herceptin+ pertuzumab (EU), Xeloda P3 line ext. Roferon A Filed (EU) Metastatic 2nd line Approval Trials (US)+ filed (EU) Approved Tarceva P3 Tarceva+ Filed Herceptin Xeloda Xeloda P3 new market opportunities addressed 19 Inflammation/Autoimmune/Transplantation Building in rheumatoid arthritis and beyond CHF m YTDSept 07 vs. YTD 06 local growth 5 % 39 % 55 % Europe/RoW US Japan +19 % +10 % +12 % YTD 2007 CellCept Growth in transplantation continues Did not meet superiority endpoint vs cyclophosphamide in lupus nephritis trial MabThera/ Rituxan New data presented at EULAR confirming excellent safety and efficacy profile in patients treated repeatedly Actemra On track for filing before the end of 2007 New data to be presented at ACR e.g. TOWARD, OPTION follow-up data etc. Investor event on Nov. 9 at ACR in Boston 20 October 16,

11 Autoimmune portfolio Ocrelizumab additionally developed for MS and lupus RA Phase I Phase II Phase III R7277 (RA) Toyama R1503 (RA) p38 inhib. Ocrelizumab (RA) MabThera (RA) DMARD IR Actemra (RA) Approved MabThera (RA TNF IR) R7277 (RA) Toyama Ocrelizumab (SLE) moving to ph. 3 Ocrelizumab (RA) MabThera (RA) DMARD IR MabThera (RA TNF IR) All Autoimmune R3477 (MS) Actelion R1295 (MS) IFN-alpha Ab (SLE) GNE Ocrelizumab (LN) Ocrelizumab (RRMS) MabThera (RRMS) GNE moving to ph. 3 MabThera (PPMS) GNE MabThera ANCA avasc. GNE MabThera (SLE) GNE Actemra (RA) Actemra (sjia) CellCept (LN) R3421 (AI) Biocryst MabThera (LN) GNE CellCept (PV) 21 Virology Pegasys growing strongly EU/ROW Major brands (CHF bn) YTDSept 07 vs. YTD 06 local growth Tamiflu -2 % Demand for pandemic planning peaked- around CHF million pandemic sales expected for Q4 07 Pegasys +10 % Strong EU/ROW growth maintained US sales affected by one-time sales adjustment for Medicaid rebates (CHF 20 m) Viracept YTD '07 YTD ' Impact from summer 07 Viracept marketing suspension. Re-instatement recommended by CHMP Investor day on Nov. 5 at AASLD in Boston to highlight growing evidence of mid-stage HCV pipeline 22 October 16,

12 Metabolism/Bone Boniva continues to gain market share Major brands (CHF m) YTDSept 07 vs. YTD 06 local growth Bonviva/Boniva +97 % NRx share in US further up to approx. 17 % Successful launches in Europe (France, Spain) Xenical -8 % Launch of alli (OTC orlistat) by GSK in US Nutropin +2 % YTD '07 YTD ' Metabolism/Diabetes pipeline making good progress Major new area for Roche emerging CETP Inhibitor Phase IIb data available internally: very encouraging Torcetrapib side effects (elevated blood pressure) appear compound-specific GLP-1 phase II data available soon First phase II data (sustained release formulation) before year end Decision for phase III to be taken in early 2008 DDP-IV (3) moves into phase II Good safety profile Potential for weight reduction? 24 October 16,

13 Anemia Mircera launched in EU CHF m Europe/RoW YTDSept 07 vs. YTD 06 local growth 36 % 64 % Japan -11 % -1 % YTD 2007 NeoRecormon/Epogin Thus far limited impact from biosimilars in EU Japan: Epogin holding market share, but price pressure continues Mircera in renal anemia Approved in EU launch progressing well FDA response by mid-november Solid clinical data based on largest phase III development program ever conducted in renal anemia 25 Therapeutic Areas Pipeline update 26 October 16,

14 Q3 2007: Major additions to phase III pipeline and ocrelizumab programs further expanded Product/ compound Indication Trial Trials initiated /FPI Metastatic gastric ca. (w/ Xeloda) Adjuvant NSCLC Aggressive NHL (w/ MabThera) AVAGAST E1505 Trial fully recruited mbc, 1st line RIBBON-1 Adj. BC, HER2-, ER-, PR- neg. BEATRICE To start soon pertuzumab mbc, HER2+, 1st line ocrelizumab SLE and LN 27 Pharma newsflow Short and mid-term catalysts Product/compound Mircera Actemra CETP inhibitor GLP-1 MabThera Event-driven newsflow Xeloda MabThera MabThera Newsflow FDA response Data at ACR and filing Phase III decision Phase III decision PPMS phase II / III data Pancreatic ca. data (AVITA) Adjuvant CC combo CLL 1 st line ph. III data CLL relapsed ph. III data mbc 1 st line data (AVADO) Adjuvant CC Expected timing Q Q Q H H Final 2007 Interim analysis 2007/08 Interim analysis 2007/08 Interim analysis 2007/08 Data in H C-O8 interim analysis every 6 months 28 October 16,

15 Major Roche managed projected submissions Phase 3 Phase 2 RCC (EU) mcrc 1st line combo oxaliplatin (EU) Actemra RA Xeloda mcrc 1 st & 2 nd line combo Status as of September 30, 2007 pancreatic Ca (EU) mbc + Taxotere (EU) Tarceva+ NSCLC 2nd line (EU) Xeloda adj. CC combo oxaliplatin MabThera RA DMARD IR (EU) mbc + standard chem (EU) Herceptin gastric Ca (EU) MabThera inhl maint 1 st line (EU) MabThera CLL (EU) Tarceva NSCLC 1 st line maint (EU) Xeloda adj. BC adj. CC (EU) gastric Ca metastatic(eu) ovarian Ca (EU) Xeloda+ adj. CC (EU) ocrelizumab (R1594 ) RA (EU) HPV 16 (R3484) cervical neoplasia GLP-1 (R1583) type II diabetes Unless stated otherwise, submissions will occur in US and EU adj. NSCLC (EU) prostate Ca (EU) +Herceptin mbc 1st line (EU) MabThera+ aggressive NHL (EU) Tarceva adj. NSCLC (EU) post 2010 DBA Oncology DBA Inflammation DBA Virology DBA Metabolic DBA CNS Others Tarceva + NSCLC 1 st line maint (EU) NSCLC squamous (EU) HER2- adj. BC (EU) Tarceva+ NSCLC 1 st line (EU) pertuzumab (R1273) solid tumors (EU) PNP inhibitor (R3421) AI/transplant RAR gamma (R667) emphysema HCV pol.inhib. (R1626) HCV aleglitazar (R1439) type II diabetes DPP-IV (3) (R1579) type II diabetes CETP inhibitor (R1658) dyslipidemia CERA (R744 ) cancer anaemia 29 Our objectives for 2007 Pharmaceuticals Further important news flow in H Filings Major clinical data Compound Phase Indication Data Status Q3 07 R1503 (p38 kinase inh.) II Rheumatoid arthritis Final terminated R1658 (CETP inh.) II Dyslipidemia Final R1440 (GKA) II Type 2 Diabetes Final Backup prioritized R1626 (polymerase inh.) II HCV Final pertuzumab II Solid tumors Final (mbc) MabThera II RRMS Full data Actemra III Rheumatoid arthritis Final (4 ph. 3 trials) CellCept III Lupus nephritis Final Preliminary data III NSCLC ( in Lung) Final III RCC (AVOREN) Full data Xeloda III Adjuvant CC (NO16968) Final 07/ 08 Xeloda III mcrc 2nd line (NO16967) Full data Compound Indication Status Q3 07 mcrc 1st line combo extension (EU) RCC (EU) Xeloda mcrc 1st/2nd line combo (US / EU) Actemra Rheumatoid arthritis (US / EU) CellCept Lupus nephritis (US / EU) Will not be filed Divisional sales growth Double-digit growth in local currencies 30 barring unforeseen events October 16,

16 Diagnostics Division Dr. Severin Schwan CEO Roche Diagnostics 31 YTD Sept 2007: Highlights in Diagnostics Growth in-line with the market Solid top-line growth Strong performance by Professional Diagnostics (+7 %) Immunochemistry grew twice the market (+12 %) Applied Science double-digit growth (+10 %) New products introduced Japanese Red Cross renewed contract for NAT blood screening using next generation system cobas TaqScreen West Nile Virus Test received FDA approval cobas IT 3000 software released globally Acquisitions on-track to strengthen business NimbleGen acquisition complete: Enables entry into research microarray market Ventana: Tender offer extended until November 1, 2007 All growth rates are YTD September 2007 vs. YTD September 2006, in local currencies 32 October 16,

17 YTD Sept 2007: Diagnostics sales by business area Professional Diagnostics providing strong growth local CHF CHF m CHF m growth growth Professional Diagnostics* 2,905 3,157 7 % 9 % Diabetes Care 2,176 2,312 4 % 6 % Molecular Diagnostics % -3 % Applied Science % 10 % Roche Diagnostics 6,415 6,823 5 % 6 % * Amalgamation of Centralized Diagnostics and Near Patient Testing 33 YTD Sept 2007: Diagnostics sales by region Geography CHF 6,823 m 1, North America 26 % Latin America 5 % Asia Pacific 9 % Roche Dx North America Local sales growth 5% 3% Japan 4 % Others 1 % EMEA* 4% Latin America 16% 3,750 EMEA 1 55 % Asia Pacific 18% Japan 1% 1 Europe, Middle East and Africa 34 October 16,

18 Professional Diagnostics cobas modular 6000 & 4000 platforms driving sales CHF m local growth YTD '05 YTD '06 YTD '07 Immunochemistry POC products YTDSept 07 vs. YTD 06 local growth +7 % 1 +3 % Clinical Chemistry Other +4 % +12 % Immunochemistry Growth driven by tests for TSH, Troponin T and NT-proBNP Vitamin D test launched ex-us (bone marker) Cardiovascular POC systems Rapid adoption of cobas h 232 system Troponin T, CK-MB, Myoglobin, D- Dimer, NT-proBNP cobas h 152 to be launched in EU Q4 07 Glucose, cholesterol, triglycerides, lactate 35 Diabetes Care Growth maintained in difficult market conditions Blood Glucose Monitoring 1 CHF m % YTD Sept '05 YTD Sept '06 YTD Sept ' Insulin Delivery +15 % 2 YTD Sept '05 YTD Sept '06 YTD Sept '07 Continued reimbursement pressure & price sensitivity in key markets (UK, Germany) Accu-Chek Aviva and Compact Plus driving growth in all key markets Accu-Chek Spirit (insulin pump) continues double-digit growth North America pump sales growing ahead of the market Accu-Chek 360 o C data management software launched to expand advice tools 1 Meters, strip, lancets 2 local growth 36 October 16,

19 Molecular Diagnostics Automated platforms supporting virology market share CHF m YTD Sept 07 vs. YTD 06 local growth % 1-50 % % % 0 YTD '05 YTD '06 YTD '07 Virology Blood Screening Other Industrial Business 1 local growth Growth +3 % excluding industrial business Japanese Red Cross renewed blood screening contract Next generation cobas s401 system and multiplex HIV/HBV/HCV test FDA approval received for fully automated cobas TaqScreen West Nile Virus test for blood screening Numerous FDA reviews pending Amplicor HPV test Linear Array HPV genotyping test Fully automated CAP/CTM HCV test Blood Screening: Multiplex HIV/HCV/HBV test 37 Applied Science: NimbleGen Enables entry into research microarray market NimbleGen Microarray Market 2006* 620 m USD, +10 % Aglient Others Illumina Affymetrix Acquisition completed Reagent kits, consumables and hybridisation instrumentation Service business DNA microarrays increasingly used as a discovery and research tool in pharma research Continue to operate in Madison (USA), Reykjavik (Iceland) and Waldkraiburg (Germany) Acquisition completes Roche s offering in genomics life science market All growth rates in local currencies * Including instruments, disposables and reagents 38 October 16,

20 Key growth drivers in 2007 Commercialise current assets; prepare market for new drivers Professional Diagnostics Diabetes Care Molecular Diagnostics Applied Science Key 2006 Launches* cobas 6000 analyzer series cobas c 111 analyzer cobas IT 5000 CoaguChek XS Plus Accu-Chek Go Accu-Chek Smart Pix Accu-Chek Spirit (US) cobas s 201 system & MPX Test LightCycler SeptiFast Test Genome Sequencer 20 LightCycler 480 instrument Divisional sales growth outlook Key 2007 Launches* cobas 4000 analyzer series cobas c 311 analyzer cobas e 411 analyzer cobas IT 3000 & 1000 cobas h 232 cobas h 152 (Accutrend Plus) Accu-Chek Performa Accu-Chek Compact Plus (new) Accu-Chek cobas s 201 system & WNV Test (US) cobas AmpliPrep/cobas TaqMan HIV Test (US) Genome Sequencer FLX Above market growth in local currencies * Subject to appropriate regulatory approvals; US launch may be later barring unforeseen events 39 October 16,

21 YTD Sept 2007: Sales Strong Pharma sales growth maintained % change in % USD CHF m CHF m CHF local growth Pharmaceuticals 23,912 27, Roche Pharma 14,921 16, Genentech 6,522 7, Chugai 2,469 2, Diagnostics 6,415 6, Roche Group 30,327 33, Pharma: Solid momentum 2006 vs vs Q1 Q2 Q3 Q4 Q1 Q2 Q3 Pharmaceuticals Division excl. pandemic Tamiflu Roche Pharma excl. pandemic Tamiflu Chugai excl. pandemic Tamiflu Pandemic: Governmental and corporate sales 42 October 16,

22 Pharma sales YTD September 2007 (vs. 2006) Top 20 products Global US Japan Europe/RoW % % % % CHF m loc CHF m loc CHF m loc CHF m loc MabThera/Rituxan 4, , , Herceptin 3, , , , , NeoRecorm/Epogin 1, ,172-2 Tamiflu 1, CellCept 1, Pegasys 1, Xeloda Tarceva Lucentis Bonviva/Boniva Xenical Xolair Valcyte/Cymevene Nutropin Pulmozyme Kytril Rocephin Neutrogin Activase/TNKase Pharma local sales growth 1 in % Top 20 products by region US Japan Europe/RoW Q4 1 Q1 2 Q2 2 Q3 2 Q4 1 Q1 2 Q2 2 Q3 2 Q4 1 Q1 2 Q2 2 Q3 2 Mabthera/Rituxan Herceptin NeoRecorm/Epogin Tamiflu Cellcept Pegasys Xeloda Tarceva Lucentis Boniva Xenical Xolair Valcyte/Cymevene Nutropin Pulmozyme Kytril Rocephin Neutrogin Activase/TNKase vs vs October 16,

23 YTD Sept 2007: Pharmaceuticals Division Regional sales distribution and growth Geographies Western Europe Breakdown Japan +7 % Others* +17 % Latin America +14 % 6% 9% 15% 1% 5% 6% Switzerland France Germany 28% 4% Italy North America +16 % 42% Western Europe +11 % 3% 3% 7% Spain UK other Western Europe all growth figures are in local currencies * including Eastern Europe 45 MabThera / Rituxan Excellent performance in EU/RoW continues CHF bn Global sales + 17 % 1 Local growth US +13 % Japan +4 % Europe/ RoW +23 % ' 03' 04' 05' 06' 07' Sales of CHF 4.1 bn Continued growth in anhl and inhl, including increased use in maintenance therapy Penetration of RA market in US and Europe/ROW continues to increase Upcoming newsflow: Phase III data for use in RA (DMARD inadequate responders) in late 2007 or early 2008 Phase II/III data for use in Primary Progressive Multiple Sclerosis in H Phase II/III data for use in Systemic Lupus Erythematosus in H Interim analysis of phase III studies in CLL 1st line and relapsed 2007/08 1 local growth 46 October 16,

24 Herceptin Adjuvant penetration continues to increase in EU/RoW 3.0 Global sales + 26 % 1 Local growth US +5 % Japan +16 % CHF bn Europe/ RoW +42 % ' 03' 04' 05' 06' 07' Sales of CHF 3.6 billion US market penetration adjuvant: approximately 70% metastatic: high penetration rate and treatment duration stable Top 5 EU market penetration: adjuvant: approx. 60% metastatic: approx. 80% 1 local growth 47 European NSCLC launch during Q3 Global sales Local growth % 1 US +35 % CHF bn Japan nm Europe/ RoW +58 % 0.0 '03 '04 '05 '06 '07 Sales of CHF 3.0 billion Penetration rate, 1st line mcrc (major EU markets): approx. 50% of on label market (as of mid-2007) mcrc label currently covers approx. 30% of total EU market: still large growth potential, especially once combination with oxaliplatin is approved Launch in 1st line mbc and NSCLC in EU progressing well 1 local growth 48 October 16,

25 Xeloda Continued growth in US and EU Global sales Local growth CHF bn % 1 US +19 % Japan +7 % Europe/ RoW +17 % ' 03' 04' 05' 06' 07' Sales of CHF 839 million Rollout in EU for gastric cancer (approved in EU in March 2007) Positive 5-year follow-up overall survival data in adjuvant colon cancer (X-ACT study) presented at ECCO 1 local growth 49 Tarceva Very strong growth in Europe continues CHF m Global sales + 34 % 1 Local growth US +3 % Europe/ RoW +90 % 0 '03 '04 '05 '06 '07 Sales of CHF 774 million Market penetration in NSCLC, top 5 EU: 2nd line: 25-30%, 3rd line: 40-45% Successful launch in metastatic pancreatic cancer (EU approval in January 2007) 1 local growth 50 October 16,

26 CellCept and Pegasys CHF m CHF bn Global CellCept sales CHF m + 47 % % %1 CHF bn Global Pegasys sales ' 03' 04' 05' 06' 07' Sales of CHF 1.5 billion US (+7 %); Japan (+16 %); EU/RoW (9 %) ' 03' 04' 05' 06' 07' Sales of CHF 1.2 billion One-time charge in Q3 for US rebates to Medicaid: CHF 20 million 1 local growth 51 Building on our portfolio for Colon Cancer Aiming for ownership of the indication Adjuvant NSABP C-O8 (w/folfox) AVANT (w/folfox or XELOX) Xeloda Approved as monotherapy NO16968 (w/ oxaliplatin) + Xeloda AVANT (includes XELOX arm) 1 st -line metastatic US: approved with broad label EU: approved with 5-FU +/- irinotecan Oxaliplatin combo filed in EU Approved as monotherapy Oxaliplatin combo filed in US, EU Oxaliplatin combo filed in US, EU 2 nd -line metastatic Approved in US Oxaliplatin combo Oxaliplatin combo Oxaliplatin combo filed in US, EU filed in EU filed in EU markets already covered new market opportunities addressed 52 October 16,

27 NSCLC: Building and moving the standard of care and Tarceva - two strong partners Adjuvant E1505 study Tarceva RADIANT + Tarceva 1 st -line metastatic Approved in US, EU with broad label SATURN (T maintenance) ATLAS (CHT+A followed by A+/-T) A+T phase II started 2 nd -line metastatic Approved in US, EU BETA lung as monotherapy (A+T vs T) markets already covered new market opportunities addressed 53 HER2-positive breast cancer Strengthen our position with new combinations and new compounds Herceptin Herceptin+ Herceptin+ Pertuzumab Trastuzumab- DM1 Adjuvant Approved with broad label Combo trial in preparation 1 st -line metastatic Approved AVEREL combo Phase III to start soon 2 nd -line metastatic Approved Strong Phase I data phase II data encouraging markets already covered new market opportunities addressed 54 October 16,

28 HER2-negative breast cancer Large metastatic and adjuvant opportunity Adjuvant E5103 to start soon BEATRICE (ER-/PR-neg.) Xeloda NO17629 recruitment completed + Xeloda 1 st -line metastatic Approved in EU in combo with paclitaxel Approved US, EU RIBBON-1 (includes Xeloda) recruitment completed Further combos: AVADO (+docetaxel), recr. completed RIBBON-1 (+standard chemos), recr. completed 2 nd -line metastatic RIBBON-2 (+standard chemos) Approved US, EU RIBBON-2 (includes Xeloda) markets already covered new market opportunities addressed 55 Roche R&D pipeline today phase I phase II (33 NMEs + 1 AI) (20 NMEs + 12 AIs) phase III (3 NMEs + 37 AIs) Registration (2 NMEs + 6 AIs) R547 solid tumors R435 - NSCLC squamous R435 - adj. colon cancer R435 mbc combo Taxol 1st R1507 solid tumors R435 - NSCLC mcns treat. R435 -prostatecancer R435 mcrc 1st combo oxalipl. R1530 solid tumors R435 - adj. BC HER2- R435 - pancreatic cancer R435 -RCC R1645 R7204 R7159 solid tumors malignant melanoma NHL PARP Inh. malignant melanoma anti-cmet - cancer R1273 R1273 pertuzumab mbc HER2+ pertuzumab ovarian cancer Tarceva + NSCLC 1st l. Anti-CD40 diff. large B cell l. apomab -sarcoma R435 R435 R435 R435 R435 - ovarian cancer 1st line -mbc combo Taxotere 1st - mbc combo chemos 1st -mbc combo Hercept 1st -adj. NSCLC R340 R340 CHU R744 CHU Xeloda -mcrccombo1st Xeloda -mcrccombo2nd Sigmart - acute heart failure Mircera - renal anaemia Antevas - subarachn. hemorr. CHU R7277 R3477 R1646 BTI R7025 R7128 R7227 R7232 R1511 R7201 R1663 R1295 R1450 R1647 R1678 R7118 R4996 R1415+R435 hedgehog antagonist - cancer Anti-CD20 3rd gen. hem. malign. IAP antag. - cancer MEK inh. - cancer ABT 263 solid & hem. tumors ABT 869 solid tumors Anti-CD40 NHL/MM/rel. B-CL CRC ARQ RA R667 autoimmune diseases R3421 pain ISO IFN-alpha Ab - SLE R3484 VAP-1 inflammatory diseases R1626 HCV R1439 HCV R1583 HCV R1579 dyslipidemia R1658 type 2 diabetes type 2 diabetes anticoagulant R1594 MS MEM Alzheimer s R744 depression CHU schizophrenia CHU schizophrenia Alzheimer s Status as of September 30, 2007 apomab -cancer Apo2L/TRAIL - cancer trastuzumab-dm1 mbc HER2+ glioblastoma recurr. ovarian cancer 2nd line extensive SCLC - relapsed MM solid tumors RAR gamma - emphysema PNP inh. AI / transplant. renal transplant. HPV16 cervical neoplasia HCV pol inh. - HCV aleglitazar type 2 diabetes GLP-1 type 2 diabetes DPP-IV (3) type 2 diabetes CETP inh. - dyslipidemia topical VEGF diabetic foot ulcers ALTU-238 growth hormone def. ocrelizumab - RRMS Alzheimer s / schizophrenia CERA cancer anaemia post-hepatectomy / cirrhosis gastroparesis / IBS R435 R597 R105 R105 R105 R105+R435 R1415 R1415 R1415+R435 R1415+R435 R340 R340 R340 R1569 R1569 CHU R105 R1594 R99 R127 CHU met. gastric cancer - GIST recurr. - adj. rectal cancer - mbc 2nd line Herceptin - gastric cancer MabThera - CLL 1st line MabThera -CLLrelapsed MabThera - inhl maint. 1st line MabThera + - NHL aggr. Tarceva - NSCLC maint. 1st line Tarceva -adj. NSCLC Tarceva + -NSCLC1st Tarceva + NSCLC2nd Xeloda- adj. CC combo oxaliplatin Xeloda - adj. CC combo Xeloda -adj. BC Actemra -RA Actemra -sjia ED-71 - osteoporosis MabThera RA DMARD IR MabThera lupus nephritis MabThera ANCA ass. vascul. MabThera -SLE ocrelizumab -RA Xolair pediatric asthma CellCept pemphigus vulgaris Valcyte CMV extension MabThera PPMS TNKase catheter clearance Lucentis diabetic macul. edema Lucentis retinal vein occlusion Epogin chemo induced anaemia R-No. CHU ARQ BTI MEM ISO NME Additional Indication DBA Oncology DBA Inflammation DBA Virology DBA Metabolic DBA CNS Others Roche managed Genentech managed Chugai managed ArQule opt-in BioTie opt-in Memory opt-in Isotechnika opt-in 56 October 16,

29 Roche managed R&D pipeline - overview Projects by Disease Biology Area (DBA) Research Development Inflammatory 24 Virology 9 Metabolic Inflammatory 16 Others 2 8 Virology 12 Metabolic 27 CNS 8 CNS Projects Oncology 44 Oncology 90 Projects including 19 in Phase 0 Status as of September 30, Maximizing a key asset Main Indication Study name Status mcrc 1st line NO16966 met primary endpoint, filed Adjuvant CC Stage II high risk / stage III AVANT Recruitment completed Q2 07 Stage II high risk / stage III NSABP C-08 Recruitment completed Q4 06 Stage II E5202 Initiated Q3 05 Adj. rectal Cancer E5204 Initiated Q1 06 RCC 1st line AVOREN Filed in EU CALGB Topline data available Pancreatic Cancer 1st line AVITA Recruitment completed Ovarian Cancer 1st line GOG 218 Initiated Q3 05 1st line ICON-7 Initiated Q4 06 relapsed GOG 213 In preparation Prostate Cancer 1st line, hormone refractory CALGB Initiated Q2 05 NHL aggressive 1st line, R-CHOP+/- MAIN Initiated in Q October 16,

30 Maximizing a key asset Main Indication NSCLC Study name Status 1st line non-squamous ATLAS Initiated Q4 05 1st line squamous AVASQ Terminated 1st line squamous BRIDGE Pilot study, initiated Q2 06 2nd line BETA Lung Initiated Q2 05 Adjuvant NSCLC Stage Ib-IIIa, sq+non-sq. ECOG 1505 Initiated (FPI) Q mbc 1st line HER2-negative AVADO Recruitment completed Q2 07 1st line HER2-negative RIBBON-1 Recruitment completed Q3 07 1st line HER2-positive AVEREL (Herc. +/- ) Initiated Q3 06 2nd line RIBBON-2 Initiated Q1 06 Adjuvant BC HER2-negative E2104 Data to be presented at SABCS HER2-negative E5103 To initiate Q1 08 HER2-negative, ER-/PR-neg. BEATRICE To initiate Q4 07 HER2-positive BETH In preparation 59 Herceptin and pertuzumab Further strengthening our position in HER2-positive BC Main Indication Study name Status HERCEPTIN Gastric cancer ToGA Initiated Q3 05, final analysis 2009 Adjuvant BC 1 year vs. 2 years treatment HERA Final analysis 2008/09 event driven PERTUZUMAB mbc HER2+, 1st line Combo with Herc. + docetaxel WO20698 To start in late 2007 mbc HER2+, 2nd line Combo with Herceptin Roche BO17929 ph. II Ongoing positive prelim. data at ASCO 2007, final data 2008 US ph. II (NCI) Data at ASCO 2007 (US) Ovarian cancer 1 st l. Combo with chemotherapy phase II Completed enrollment in 2007, results in H Ovarian cancer 2nd l. Combo with gemcitabine phase II Data presented at ASCO October 16,

31 Xeloda / Tarceva / MabThera Expanding to new indications and combinations Main Indication Study name Status XELODA Adjuvant CC Combo with AVANT Recruitment completed Q2 07 Combo with oxaliplatin NO16968 Recruitment completed, final analysis end 2007 or H Adjuvant BC NO17629 Recruitment completed January 06 TARCEVA NSCLC 1st maint. Combo with chemotherapy SATURN Initiated Q4 05 Combo with ATLAS Initiated Q4 05 NSCLC 2nd line Combo with BETA Lung Initiated Q2 05 Adjuvant NSCLC RADIANT Initiated Q3 06 MABTHERA NHL maint. 1st line After MabThera induction PRIMA Recruitment completed Q1 07 CLL 1st line ML17102 Recruitment completed CLL relapsed REACH Recruitment completed Q Actemra Broadly investigated in all RA segments Main Indication Study name Status Rheumatoid Arthritis MTX IR OPTION OPTION: presented EULAR 07 DMARD IR MTX-naive patients Anti-TNF IR MTX IR Prevention of structural damage TOWARD AMBITION (monotherapy) RADIATE LITHE Data at ACR 2007 Topline data positive Topline data positive Recruitment completed, 2 yrs study IR = inadequate responders 62 October 16,

32 MabThera / ocrelizumab anti-cd-20 pipeline Major indications in phase III development Main Indication Study name Status Rheumatoid Arthritis MABTHERA MTX IR MIRROR, SERENE, SUNRISE Recruitment completed MTX - naive IMAGE Initiated Q1 06 Combo with Enbrel TAME Initiated Q2 06 OCRELIZUMAB MTX IR Phase III STAGE Initiated Q4 06 Anti-TNF IR Phase III SCRIPT Initiated Q2 07 MTX naive; X-ray study Phase III FILM Initiated Q2 07 Anca ass. vasculitis MABTHERA RAVE Initiated Q4 04 Lupus nephritis MABTHERA LUNAR Recruitment to complete Q4 07 OCRELIZUMAB Phase III To initiate late 2007 IR = inadequate responders 63 MabThera / ocrelizumab anti-cd-20 pipeline Major indications in phase III development Main Indication Study name Status Syst. Lupus erythematosus MABTHERA EXPLORER Completed enrollment Q1 07 OCRELIZUMAB Phase III To initiate late 2007 Multiple Sclerosis MABTHERA PPMS OLYMPUS Recruitment completed Q4 05 RRMS HERMES Met primary endpoint: data presented at AAN 2007 OCRELIZUMAB RRMS Phase II Expected to initiate in H October 16,

33 Metabolic and vascular diseases Major decision points in 2007 and 2008 Main Indication Type 2 Diabetes Status R1583 (GLP-1) Phase II Presented at ADA 2006 Phase II sustained release formulation Initiated Q1 07 R1439 (PPAR α/γ) Phase II Initiated Q4 06 R1579 (DPP IV-3) Phase II Initiated Q3 07 R1511 (GK 3) Phase I Ongoing Dyslipidemia R1658 (JTT-705) Phase II Encouraging data go/no go decision for phase III in Tamiflu sales Pharmaceuticals Division CHF m 1' YTD Sep Seasonal Pandemic 1 1,234 1,398 0 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q Governmental & Corporate 66 October 16,

34 YTD Sept 2007: Diagnostics local sales By Region & Business Area (vs. YTD Sept 2006) Global % loc CHF m growth Nth Am. CHF m % loc growth CHF m EMEA % loc growth RoW CHF m % loc growth Professional Diag. 3, , Diabetes Care 2, , Molecular Diagnostics Applied Science Roche Diagnostics 6, , , , Diagnostics quarterly sales & local growth 1 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 CHF m % loc CHF m % loc CHF m % loc CHF m % loc CHF m % loc Professional 955 6% 1,024 5% 1,017 5% 1,093 8% 1,047 7% Diagnostics Diabetes 748 5% 844 6% % 789 3% 768 0% Care* Molecular 291 0% 293-1% 278-2% 296-3% 282-3% Diagnostics* Applied % % 166 7% % % Science* DIA Division 2,143 6% 2,332 5% 2,216 6% 2,343 5% 2,264 4% vs for Q3 to Q4 06, 2007 vs for Q1 to Q3 07 * service support removed from Business Areas DC, MD & AS and reallocated into Professional Diagnostics 68 October 16,

35 2007: Key planned product launches* (1) Product BA 1 Indication Region cobas 4000 analyzer series PD Next generation modular system consolidating clinical chemistry and immunochemistry testing for small to medium workload laboratories; software links cobas c 311 & cobas e 411 modules with cobas p242 data manager Global - cobas e 411 analyzer PD Stand-alone immunochemistry analyzer Global - cobas c 311 analyzer PD Stand-alone clinical chemistry analyzer Global cobas IT 3000 solution PD Central Lab Data Management System (WAM) consolidating instrument interfacing Global cobas h 232 PD Portable system for cardiac point-of-care testing EU cobas h 152 PD Hand-held meter for measuring glucose, cholesterol, triglycerides and lactate in blood - for professional and self testing EU cobas IT 1000 solution PD Software managing work area for hospital point-of-care systems global 1 Business Areas: Professional Diagnostics (PD) * Subject to appropriate regulatory approvals; US launches may be later than indicated : Key planned product launches* (2) Product BA 1 Indication Region cobas s 201 system & WNV Test MD Real-time PCR detection of West Nile Virus in donated blood and plasma on the automated cobas s 201 system US Cobas AmpliPrep/ Cobas TaqMan HIV Test MD Real-time PCR quantification of HIV viral levels on fully automated Cobas AmpliPrep/Cobas TaqMan systems US Cobas AmpliPrep/ Cobas TaqMan HIV, HCV, HBV Tests MD Real-time PCR quantification of HIV, HCV & HBV viral levels on fully automated Cobas AmpliPrep/Cobas TaqMan systems Japan Accu-Chek Performa DC Blood glucose monitoring system, 5 sec results, extensive quality checks, advanced data management features Global Accu-Chek Compact Plus (new) DC Successor of Accu-Chek Compact Plus blood glucose monitoring system with improved ergonomic and attractive user interface. Global Accu-Chek 360 o DC Customisable PC-based data management software designed for wide range of uses, from downloading data to performing detailed analyses Global Genome Sequencer FLX AS Next generation DNA sequencing system Global 1 Business Areas: Applied Science (AS), Molecular Diagnostics (MD), Diabetes Care (DC) * Subject to appropriate regulatory approvals; US launches may be later than indicated 70 October 16,

36 October 16,