Roche First quarter Roche First Quarter 2007 Apr. 18,

Transcription

1 r Roche First quarter 2007 April 18, 2007 Apr. 18,

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 Group Dr. Erich Hunziker Chief Financial Officer 4 Apr. 18,

3 Q1 2007: Industry leading More than CHF 1.5 billion organic growth CHF bn % change in USD Q1 06 Q1 07 CHF local growth Pharmaceuticals Diagnostics Roche Group Consistently outgrowing peers Group normalised sales - Constantly outperforming World Pharma Market Q1 '04 Q2 '04 Q3 '04 Q4 '04 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Pharma World market (IMS) 35% 30% 25% 20% 15% 10% 5% 0% Quarterly local sales growth, Pharma vs. World Market Q1 '04 Q2 '04 Q3 '04 Q4 '04 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Pharma World market (IMS) 6 Apr. 18,

4 2007 vs. 2006: Negative YTD impact of USD and JPY Average exchange rates Q1 06 Q1 07 USD Q1 07 vs. Q % EUR % JPY % Group overall Fx impact -1.8% -8% -6% -4% -2% 0% 2% 4% 6% 7 Q1 2007: Targeted and focused acquisitions 4 targeted acquisitions/deals in Pharma and Diagnostics BioVeris (electrochemiluminescence technology) THP (therapeutic antibody technology) 454 Life Sciences (ultra fast gene sequencing) Transgene (HPV therapeutic vaccine) Commitment to technology leadership and our two pillars 8 Apr. 18,

5 Growth objectives for 2007 Improved 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 9 Pharmaceuticals Division William M. Burns CEO Roche Pharmaceuticals 10 Apr. 18,

6 Q1 2007: Highlights in Pharma Continuous growth on a high level Strong overall double-digit growth for Pharma - all three units, Roche Rx, Genentech and Chugai growing double digit Top ten products now 70 % of overall Pharma sales Major approvals and filings on track, including in breast cancer Positive Phase III data on Actemra - entering the rheumatoid arthritis market One technology acquisition (THP) and a Phase II NME for HPV treatment licensed (Transgene) 11 Pharma delivering strong double-digit growth Sales CHF m % change in USD Q1 06 Q1 07 CHF local growth Roche Pharma 4,821 5, Genentech 2,056 2, Chugai Pharmaceuticals 7,739 9, Quarterly local growth 2006 vs Q1 07 vs. Q1 06 Q1 Q2 Q3 Q4 Roche Pharma Genentech Chugai Pharmaceuticals Apr. 18,

7 Q1 2007: Growing more than three times the market Execution of assets on hand Local sales growth Top 10 products as % of pharmaceutical sales Division Europe North America Latin America Japan -2% 4% 6% 8% 13% 11% 20% 21% 21% 24% Roche IMS MAT Jan '07 80% 70% 60% 50% 40% 30% 20% 10% 0% 2.2% 5.5% 7.1% 0.9% 2.7% 5.3% 6.0% 8.4% 9.4% 6.9% 2.1% 4.2% 0.9% 6.3% 6.4% 2.2% 3.1% 4.5% 5.9% 6.9% 7.8% 2.7% 2.9% 2.9% 4.4% 5.2% 5.7% 9.5% 8.7% 10.1% 11.1% 12.8% 15.0% 15.1% 14.8% 14.3% Tarceva Lucentis Xeloda Pegasys CellCept NeoRecormon/ Epogin Tamiflu Herceptin MabThera/ Rituxan 13 Q1 2007: Outstanding Pharma newsflow 4 approvals and 2 positive recommendations in mbc (EU) Tarceva in pancreatic cancer (EU) Xeloda in gastric cancer (EU) Pegasys/Copegus combination in HCV (Japan) in mcrc: positive recommendation (Japan) Herceptin in mbc (hormonal combo): positive recommendation (EU) 3 filings Xeloda in 1st and 2nd line mcrc (EU, US) in 1st line mcrc combo oxaliplatin (EU) 2 phase III trials met primary endpoints Actemra in rheumatoid arthritis (OPTION) in 1st line NSCLC ( in Lung, formerly AVAiL) 14 Apr. 18,

8 Therapeutic Areas: quarter review Pipeline update 15 Oncology: Europe/ RoW particularly strong CHF bn Q1 07 vs. Q local growth Q % xx % 5 % x % 45 % +34 % +8 % +13 % Franchise continues to strongly outgrow market (market +14 % 1 ) Bringing innovation to 3 indications in mbc Tarceva in pancreatic cancer Xeloda in gastric cancer US Japan Europe/RoW 1 IMS Q Apr. 18,

9 Oncology: Diversified portfolio of large products Significant growth potential Major brands (CHF bn) MabThera Rituxan Herceptin +17 % +36 % local growth Continued growth driven by inhl maintenance therapy and good adoption in RA Market share in adj BC 40 % for 5 key EU countries, hormonal combo recommended (EU) +41 % mbc approved (EU), 1st line mcrc combo with oxaliplatin filed in EU Xeloda +14 % Strong growth EU (+22 %), gastric Ca approved (EU), new mcrc indications filed (US and EU) Tarceva +44 % Q1 '07 Q1 '06 Very strong growth in EU (+125 %), launch in pancreatic cancer (EU) approved in breast cancer Entering a major market opportunity Metastatic breast cancer Approved in EU (HER2 +/-) Based on E2100 (paclitaxel +/- ) Doubling of PFS from 6.7 to 13.3 m Completing the label in mbc AVADO (Taxotere +/- ): fully recruited in March 2007 RIBBON-1/-2 (var. chemos +/- ) AVEREL (Taxotere + Herceptin +/-, in HER2+ patients) Adjuvant opportunity Safety profile established E2104 phase II with anthracyclines Phase III adjuvant trials to start E5103 (HER2-), to start H2 07 BEATRICE (HER2-), to start 2007 NSABP/BCIRG/CONTACT (HER2+) combo with Herceptin Incidence: 100,000 cases 1, 2) Incidence: 320,000 cases 1) 1) US and top 5 EU, 2) stage IV 18 Apr. 18,

10 recommended for mcrc in Japan Significant opportunity ahead Market opportunity High incidence of colorectal cancer 115,000 new cases per year (US incidence: 157,000 per year) Japanese CRC market in 2006: CHF 1 billion (chemotherapies only) FOLFOX and FOLFIRI most frequently used chemos in 1st line mcrc Significant market for oncology drugs Regulatory progress Feb. 2007: Positive recommendation by expert panel of Japanese Ministry of Health, Labor and Welfare Approval and launch expected by mid-year Omnitarg- building a new standard of care Herceptin epitope AA ErbB2 HER2 Omnitarg epitope AA Omnitarg in breast cancer Herceptin+Omnitarg combo phase II trial in Herceptin pre-treated patients successful Phase III in preparation Omnitarg in ovarian cancer In platinum-resistant ovarian cancer, phase II encouraging results (GNE trial) In platinum-sensitive ovarian cancer, Phase II data by early 2008 (Roche trial) Promising phase II data to be presented at ASCO 20 Apr. 18,

11 Inflammation/ Autoimmune/ Transplantation Building in rheumatoid arthritis and beyond CHF bn Q1 07 vs. Q1 06 local growth % xx % +29 % 0.3 xx 9 % +26 % % % US Japan Europe/RoW Q MabThera/ Rituxan RA label expanded with radiographic data (EU) Promising phase II data in MS (HERMES) to be presented at AAN Systemic lupus erythematosus (SLE) phase III (EXPLORER) completed recruitment Actemra First international phase III trial (OPTION) met primary endpoint 21 Actemra phase III trial meets primary endpoint Potential to become significant new RA treatment First positive international trial (OPTION) reported Met primary efficacy endpoint (in MTX IR) Competitive safety profile Submitted to EULAR (June 2007) Large phase III program recruitment completed 5 registration trials in total (4,200 patients) Various moderate-to-severe patient populations studied Further clinical data until mid-2007 Filed in Japan in 2006, global filing planned Q Apr. 18,

12 Virology Building on our leading position in hepatitis C CHF bn Q1 07 vs. Q1 06 local growth xx 62 % % xx % 16 % 22 % % +48 % -9 % US Japan Europe/RoW Q Pegasys Copegus combo approved in Japan Further competitive differentiation by personalized treatment options Approval of 24 weeks treatment in genotype 1&4 rapid responders (EU) Fixed dose in heavy weight patients, genotype 1, PROGRESS trial initiated R1626 (HCV-polymerase inhibitor) Phase IIa: encouraging Phase IIb: to be initiated soon Therapeutic HPV vaccine from Transgene (phase III in preparation) 23 Virology Tamiflu sales remain strong Pegasys back to growth Major brands (CHF bn) Tamiflu Pegasys +15 % Valcyte/Cymevene +15 % Fuzeon +12 % local growth +47 % Guidance maintained for pandemic sales of CHF 0.8 to 1.2 bn in 2007 (Q1: pandemic CHF 0.7 bn) Weak Q1 06 in the US, strong EU growth Growth driven by increased use in transplant and HIV/ AIDS indications Combo use with major protease inhibitors Copegus -5 % First launch in Japan, Genericisation in US Invirase/Fortovase +23 % 1Q '07 1Q '06 Growth in US and EU driven by Invirase 500mg Apr. 18,

13 Metabolism/ Bone Franchise growth driven by Boniva CHF bn Q1 07 vs. Q1 06 local growth 41 % 13 % 46 % US Japan Europe/RoW +15 % +2 % +25 % Q Xenical Life cycle management on track: Alli launch (US) by GSK; non-rx rights outside US also out-licensed to GSK GLP-1 (R1583) Phase II sustained release formulation (qw and q2w) initiated CETP Inhibitor (R1658) Committed to progress development Decision on phase III trial to include full available data review on class, and regulatory discussions Decision to be taken in Metabolism/ Bone Boniva being launched in Europe Major brands (CHF m) local growth Bonviva/Boniva +132 % NRx share in US approx. 15 % Successful launches in Europe (France, Spain) Xenical -10 % Weak quarter in US and Russia, due to lower noise level on the sector Nutropin +5 % 1Q '07 1Q '06 2nd generation AQ Pen submitted to FDA in February Apr. 18,

14 Anemia NeoRecormon: Growing despite a highly competitive market CHF bn Europe/ RoW Q1 07 vs. Q1 06 local growth 24 % 76 % Japan -17 % +3 % Q NeoRecormon/ Epogin Growth in Europe/ RoW (+3 %) in spite of intense competition Japan: base effect following April 2006 reimbursement change Mircera in anemia Filed in US and EU- Review by FDA to be completed by May 19, 2007 Solid clinical data based on largest phase III development program ever conducted in renal anemia Future development in oncology will benefit from FDA/ ODAC (May 07) 27 Therapeutic Areas: quarter review Pipeline update 28 Apr. 18,

15 Major Roche managed projected submissions Over the next years Phase II Phase III R1503 (p38 kinase inh.) RA R1626 (polym. inh.) HCV Actemra RA/sJIA CellCept lupus nephritis RCC (EU) mcrc 1st line combo extension (EU) Xeloda mcrc 1st & 2nd line combo MabThera RA DMARD inadeq. resp. (EU) Xeloda combo oxaliplatin adj. CC pancreatic Ca (EU) Herceptin gastric Ca (EU) Tarceva NSCLC 1st line maint (EU) Tarceva+ NSCLC 2nd line (EU) mbc 1st line extension (EU) Tarceva+ NSCLC 1st line maint (EU) R1440 (GKA) type II diabetes R744 (CERA) * chemo induced anemia MabThera inhl maint 1 st line (EU) Xeloda adj. BC MabThera CLL (EU) R1583 (GLP-1) type II diabetes R1594 (Ocrelizumab) RA (EU) adj. CC (EU) ovarian Ca (EU) Xeloda+ adj. CC (EU) R667 emphysema R1273 (Omnitarg) solid tumors (EU) R1658 (CETP inh.) dyslipidemia NSCLC squamous (EU) R1439 type II diabetes +Herceptin mbc 1st line (EU) Tarceva adj. NSCLC (EU) prostate Ca (EU) post 2010 Status as of March 31, 2007 * Timeline under evaluation Unless stated otherwise, submissions will occur in US and EU 29 Q1 2007: pipeline moving ahead Phase III initiatives Product Indication Trial Region Filings Xeloda 1st + 2nd line mcrc 1st line mcrc combo oxaliplatin EU and US EU Trial completions Actemra RA (MTX IR) 1st line NSCLC OPTION in Lung Trial recruitment completions MabThera MabThera 1st line inhl maintenance SLE mbc PRIMA EXPLORER AVADO Phase III decisions Omnitarg mbc 30 Apr. 18,

16 Q1 2007: pipeline moving ahead Phase II initiatives Trial completions Trial initiations Moved to Phase II In-licensed Trial halted Reverted to partner Product Omnitarg R1626 GLP-1 (R1583) + Sutent MEM3454 (Memory) TG4001 (Transgene) CERA R1558 R1492 (Epothilone D) Indication Ovarian cancer (platinum resistant) HCV, phase IIb to be intiated soon Type II diabetes (sustained release formulation) Malignant melanoma (BEAM) mbc (SABRE-B) and NSCLC (SABRE-L) Alzheimer s disease HPV Chemotherapy induced anemia (program to continue following full data analysis and outcome from the upcoming FDA ODAC meeting) Antibiotic, reverted to Sankyo Solid tumors (backup to start phase II in 2007), Kosan 31 Strong clinical newsflow in Q Key data submitted to upcoming medical meetings Product Trial Phase Indication Congress MabThera HERMES II RRMS AAN, April 2007 AVOREN III 1st line RCC ASCO, June 2007 in Lung III 1st line NSCLC ASCO, June 2007 /Xeloda NO16966 III 1st line mcrc ASCO, June 2007 Xeloda NO16967 III 2nd line mcrc ASCO, June 2007 Omnitarg II Platinum-resistant ovarian cancer ASCO, June 2007 Omnitarg II HER2+ BC (Herceptin pre-treated) ASCO, June 2007 Actemra OPTION III RA MTX inadequate responders EULAR, June Apr. 18,

17 Our objectives for Pharmaceuticals Filings Major clinical data Compound R1503 (p38 kinase inh.) R1658 (CETP inh.) R1440 (GKA) R1626 (polymerase inh.) Omnitarg MabThera Actemra CellCept Xeloda Xeloda Compound Xeloda Actemra CellCept Phase II II II II II II III III III III III III Indication mcrc 1st line combo extension (EU) RCC (EU) mcrc 1st/2nd line combo (US / EU) Rheumatoid arthritis (US / EU) Lupus nephritis (US / EU) Indication Rheumatoid arthritis Dyslipidemia T2D HCV Solid tumors RRMS Rheumatoid arthritis Lupus nephritis NSCLC ( in Lung) Adjuvant CC (NO16968) mcrc 2nd line (NO16967) RCC (AVOREN) Status Q1 07 Data Final Final Final Final Final Full data Final Final Final Final 07/ 08 Full data Full data Status Q1 07 (OPTION) Divisional sales growth Double-digit growth in local currencies barring unforeseen events 33 Diagnostics Division Severin Schwan CEO Roche Diagnostics 34 Apr. 18,

18 Q1 2007: Diagnostics continues above-market growth Solid top-line growth of +6 % Diabetes Care showed strong performance (+11 %) Molecular diagnostics grew +6 % (excluding industrial business) North America continued growth trend (+10 %) Two major acquisitions to strengthen business 454 Life Sciences strengthen presence in ultra-fast gene sequencing in Life Science market BioVeris expand Immunochemistry into new markets in central lab testing 35 Q1 2007: Diagnostics sales by business area Strong growth in Diabetes Care Q1 06 Q1 07 local CHF CHF m CHF m growth growth Professional Diagnostics* 964 1,017 5 % 5 % Diabetes Care % 11 % Molecular Diagnostics % -3 % Applied Science % 6 % Roche Diagnostics 2,091 2,216 6 % 6 % * Amalgamation of Centralized Diagnostics and Near Patient Testing 36 Apr. 18,

19 Q1 2007: Diagnostics sales by region Strong growth in North America CHF 2,216 m local sales growth Nth America 26 % Latin America 5 % Asia Pacific 8 % Japan 4 % Others 0 % Roche Dx North America EMEA* 5% 6% 10% 1,250 EMEA 1 57 % Latin America Asia Pacific 18% 16% Japan -2% 1 Europe, Middle East and Africa 37 Professional Diagnostics cobas 6000 analyser placements driving sales CHF m % % % % 0 Q1 '05 Q1 '06 Q1 '07 Clinical Chemistry Immunochemistry POC products other 1 local growth cobas modular platform rollout continues cobas e 411 launched, first immunochemistry module of cobas 4000 series for small volume labs Immunochemistry sales benefiting from instrument placements & new markers (vitamin D, TORCH panel) Clinical Chemistry returned to market growth CoaguChek XS launched in US for patient self-coagulation monitoring 38 Apr. 18,

20 Immunochemistry: Acquisition of BioVeris Expand Immunochemistry into new market segments Heterogeneous Immunochemistry Market bn USD, +6 % Dade OCD Beckman Coulter others Roche GE/ Abbott Siemens/ Bayer Ownership of full ECL patent estate Enables Roche to enter markets previously excluded (drug discovery, clinical trial testing) Clinical trial testing market around CHF 400m, growing 10 % Lab customers increasingly performing clinical trial testing in addition to routine IVD testing Exploit full potential of novel assays and demand for surrogate markers (NT-proBNP, bone markers) 39 Diabetes Care Delivering on our commitments 750 Blood Glucose Monitoring* 10 % 1 75 Insulin Delivery +21 % 1 CHF m Q1 '05 Q1 '06 Q1 '07 0 Q1 '05 Q1 '06 Q1 '07 North America returned to above-market growth leveraging the benefit of the complete Accu-Chek product portfolio Accu-Chek Performa commenced launch in first markets 5 sec test time, extensive quality checks, advanced data management features * meters, strip, lancets 1 local growth 40 Apr. 18,

21 Molecular Diagnostics Automated platforms supporting market share CHF m % 1-74 % +3 % Growth was +6 % excluding industrial business, which declined as announced Virology growth from placements of improved automation Blood screening growth offset by price decrease in Japan (Apr 06) % Amplicor HPV test and Linear Array HPV genotyping test filed with FDA (PMAs) 0 Q1 '05 Q1 '06 Q1 '07 Virology Blood Screening Industrial Business Other 1 local growth 41 Applied Science: Acquisition of 454 Life Sciences Strengthens presence in ultra-fast gene sequencing market Gene Sequencing Market* 800 m USD, +3 % Roche GE Others ABI May 2005 entered exclusive distribution agreement for Genome Sequencer systems & reagents to research market Genome Sequencer 20 launched Oct 05 Genome Sequencer FLX (2nd generation DNA sequencer) launched Jan 07 Acquisition gives Roche access to future generation sequencing products and to develop systems in new applications All growth rates in local currencies * Including systems, reagents and sequencing services 42 Apr. 18,

22 Key growth drivers in 2007 Commercialise current assets; prepare market for new drivers Professional Diagnostics Diabetes Care 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) 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 Accu-Chek Performa Accu-Chek Compact Plus (new) Accu-Chek Molecular Diagnostics cobas s 201 system & MPX Test LightCycler SeptiFast Test cobas s 201 system & WNV Test (US) cobas AmpliPrep/cobas TaqMan HIV Test (US) Applied Science Genome Sequencer 20 LightCycler 480 instrument Genome Sequencer FLX Divisional sales growth outlook Above market growth in local currencies * Subject to appropriate regulatory approvals; US launch may be later barring unforeseen events 43 r 44 Apr. 18,

23 Pharma sales Q1 07 (vs. Q1 06) Top 20 products Global US Japan Europe/RoW % % % % CHF m loc CHF m loc CHF m loc CHF m loc MabThera/Rituxan 1, Herceptin 1, Tamiflu NeoRecorm/Epogin CellCept Pegasys Xeloda Lucentis Tarceva Bonviva/Boniva Xenical Xolair Valcyte/Cymevene Nutropin Pulmozyme Kytril Rocephin Neutrogin Activase/TNKase Pharma sales Q1 07 (vs. Q1 06) Other important products Global US Japan Europe/ RoW % % % % CHF m loc CHF m loc CHF m loc CHF m loc Fuzeon Invirase/Fortovase Raptiva Bondronat Apr. 18,

24 Pharma local sales growth 1 Q1 07 (vs. Q1 06) Global top 20 products Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 MabThera/Rituxan Herceptin Tamiflu NeoRecormon/Epogin CellCept Pegasys Xeloda Lucentis Tarceva Bonviva/Boniva Xenical Xolair Valcyte/Cymevene Nutropin Pulmozyme Kytril Rocephin Neutrogin Activase/TNKase Q1-Q4 06: 2006 vs. 2005; Q1 07: 2007 vs Pharma quarterly local sales growth 1 Top 20 products by region US Japan Europe/RoW Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 MabThera/Rituxan Herceptin Tamiflu NeoRecorm/Epogin CellCept Pegasys Xeloda Lucentis Tarceva Bonviva/Boniva Xenical Xolair Valcyte/Cymevene Nutropin Pulmozyme Kytril Rocephin Neutrogin Activase/TNKase Q2 to Q4: 2006 vs. 2005; Q1: 2007 vs Apr. 18,

25 Q1 07: Pharmaceuticals Division Regional sales distribution and growth Geographies Western Europe Breakdown Japan 11% Others* +20 % Latin America +24 % 6% 10% 15% 1% 5% 6% Switzerland France Germany North America +21% 40% 29% 4% 4% 3% 6% Italy Spain UK other Western Europe all growth figures are in local currencies * including Eastern Europe 49 MabThera / Rituxan Strong growth in its 10th year on the market CHF bn Global sales Q1 '02 Q1 '03 Q1 '04 Q1 '05 Q1 '06 Q1 '07 YTD sales of CHF bn Continued growth in anhl and inhl, including increased usage in maintenance therapy Increasing penetration of RA market in US and Europe/ ROW Phase II in relapsing-remitting multiple sclerosis (RRMS) met primary endpoint Full data to be presented at AAN % 1 Regional sales Large phase III program in RA (DMARD IR) and autoimmune on track Local growth Europe/ RoW +23 % Japan +1 % US +13 % 1 local growth 50 Apr. 18,

26 Herceptin Adjuvant usage continues to drive growth CHF bn Global sales + 36 % 1 Q1 '02 Q1 '03 Q1 '04 Q1 '05 Q1 '06 Q1 '07 Regional sales Local growth Europe/ RoW +61 % Japan +23 % US +7 % YTD sales of CHF bn Positive recommendation in EU in mbc combo hormonal Phase III (TAnDEM) showed prolonged PFS when Herceptin added to hormonal therapy in HER2-pos/ ER-pos mbc 1 local growth 51 Approved for breast cancer in EU CHF bn Global sales + 41 % 1 Regional sales Local growth Europe/ RoW +63 % US +34 % 0.0 Q1 '04 Q1 '05 Q1 '06 Q1 '07 YTD sales of CHF 923 m US growth mostly from increased use in NSCLC, EU/RoW: strong growth in mcrc Approved in 1st line mbc (EU) US re-submission in mbc on track for mid-2007 Phase III (AVOREN): superior efficacy of compared to interferon Filed EU in 1st line mcrc combo oxaliplatin Phase III (NO16966): superior efficacy of in combination with oxaliplatin 1 local growth 52 Apr. 18,

27 Xeloda Label expansions continue to drive growth 0.3 Global sales + 14 % 1 Regional sales Local growth CHF bn Europe/ RoW +22 % Japan +3 % 0.0 Q1 '02 Q1 '03 Q1 '04 Q1 '05 Q1 '06 Q1 '07 US +2 % YTD sales of CHF 267 m Approved for gastric cancer in EU in March 2007 Phase III trials in gastric (ML17032) and oesophagogastric cancer (REAL2) showed noninferiority of Xeloda compared to standard therapy Filed in 1st and 2nd line mcrc combo oxaliplatin (US and EU) Phase III (NO16966) demonstrated non-inferior PFS and OS of XELOX vs. FOLFOX in 1st line Phase III (NO16967) demonstrated non-inferior PFS of XELOX vs. FOLFOX in 2nd line 1 local growth 53 Tarceva Strength in Europe continues 0.3 Global sales + 44 % 1 Regional sales Local growth CHF m Europe/ RoW +125 % 0.0 Q1 '05 Q1 '06 Q1 '07 YTD sales of CHF 243 m Very strong performance in Europe EU approval in metastatic pancreatic cancer received in January 07 Recruitment ongoing in several trials aiming at further label expansions: 1st line NSCLC maintenance (SATURN, ATLAS) 2nd line NSCLC combo (Beta Lung) adjuvant NSCLC (RADIANT) 1 local growth US +9 % 54 Apr. 18,

28 Roche R&D pipeline today R1295 R3477 R3421 R1511 R1579 R1663 R1646 R1450 R1678 R7118 R1647 R7090 R547 R1507 R1530 R1645 R7204 R7025 R7227 R7128 CHU Phase I (28 NMEs + 1 AI) MS autoimmune diseases AI / transplant type 2 diabetes type 2 diabetes anticoagulant pain Alzheimer s schizophrenia schizophrenia depression anxiety solid tumors solid tumors solid tumors solid tumors malignant melanoma HCV HCV HCV (BR3-Fc) RA (IFN-alpha Ab) SLE (PARP Inh) malignant melanoma (DM1) mbc (Apo2L/TRAIL) cancer (hedgehog antag) cancer (Apomab) cancer CRC (CD40) CLL/MM Status as of March 31, 2007 Phase ll (18 NMEs + 10 AIs) R1503 R1439 R1440 R1583 R1658 R1273 R3484 R667 R1626 MEM ISO ARQ CHU CHU R744 R435 R435 R1273 R1594 rheumatoid arthritis type 2 diabetes type 2 diabetes type 2 diabetes dyslipidemia Omnitarg mbc HER2+ cervical neoplasia emphysema HCV (topical VEGF) diabetic foot ulcers (CD40 Ab) NHL (ALTU 238) growth hormone def Alzheimer s renal transplantation solid tumors gastroparesis / IBS post-hepatectomy /cirrhosis (HAE1) asthma CERA chemo induced anemia NSCLC squamous NSCLC mcns treat adj. BC HER2- Omnitarg ovarian cancer Ocrelizumab RRMS malignant melanoma glioblastoma recurr ovarian cancer 2nd Lucentis diabetic macular edema Phase III (3 NMEs + 33 AIs) R1569 R1594 CHU R1569 R99 R99 R105 R105 R105 R105 R1415 R1415 R1415+R435 R1415+R435 R340 R340 R340 R435 R435 R435 R435 R435 R435 R435 R435 R597 R127 Actemra RA Ocrelizumab RA ED-71 osteoporosis Actemra sjia CellCept lupus nephritis CellCept PV MabThera RA DMARD IR MabThera CLL 1st line MabThera CLL relapsed MabThera inhl maint 1st Tarceva NSCLC maint 1st Tarceva adj. NSCLC T+A NSCLC 2nd line T+A NSCLC 1st line maint. Xeloda adj. CC combo oxaliplatin Xeloda adj. CC combo Xeloda adj. BC adj. CC pancreatic cancer prostate cancer ovarian cancer 1st mbc combo Taxotere1st mbc combo non-taxanes 1st mbc combo Hercept 1st RCC Herceptin gastric cancer Valcyte CMV ext. GIST recurr. adj. rectal cancer mbc 2nd line MabThera Lupus nephritis MabThera PPMS MabThera ANCA a. vascul. MabThera SLE TNKase catheter clearance Xolair pediatric asthma R744 CHU R597 R435 R435 R435 R340 R340 CHU CHU Legend R R xx A Registration (2 NMEs + 8 AIs) Mircera renal anemia Antevas subarach. haemor. Herceptin mbc combo horm. NSCLC 1st line mbc combo Taxol 1st mcrc 1st combo oxali Xeloda mcrc combo 1st Xeloda mcrc combo 2nd Epogin chemo induced anemia Sigmart acute heart failure NMEs Roche Managed Additional Indications (AI) Roche Managed Opt-in Opportunities (NME/AI) CHU Chugai Genentech ARQ ArQule ISO Isotechnika MEM Memory Participations (NMEs/AIs) 55 Roche managed R&D pipeline - overview Projects by Disease Biology Area (DBA) Research Development Inflammation 21 Virology 7 Metabolic 28 Inflammation 17 Others 1 8 Virology 12 Metabolic CNS 8 CNS Oncology Oncology 107 Projects 87 Projects* Status as of March 31, 2007 *Including 19 in phase 0 56 Apr. 18,

29 Q1 2007: Diagnostics local sales By region & Business Area (vs. Q1 2006) Global % loc CHF m growth Nth Am. CHF m % loc growth CHF m EMEA % loc growth RoW CHF m % loc growth Professional Diagnostics 1, Diabetes Care Molecular Diagnostics Applied Science Roche Diagnostics 2, , Diagnostics quarterly sales & local growth 1 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 CHF m % loc CHF m % loc CHF m % loc CHF m % loc CHF m % loc Professional 964 8% 986 4% 955 6% 1,024 5% 1,017 5% Diagnostics Diabetes 682-5% 746 6% 748 5% 844 6% % Care* Molecular 288 7% 303 5% 291 0% 293-1% 278-2% Diagnostics* Applied % % % % 166 7% Science* DIA Division 2,091 3% 2,181 5% 2,143 6% 2,332 5% 2,216 6% vs for Q1 to Q4 06, 2007 vs for Q1 07 * service support removed from Business Areas DC, MD & AS and reallocated into Professional Diagnostics 58 Apr. 18,

30 2007: Key planned product launches* (1) Product cobas 4000 analyzer series BA 1 PD Indication 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 the PSM data manager Region Global cobas c 311 analyzer PD Stand-alone clinical chemistry analyzer for small- to mediumworkload laboratories 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 EU 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) Accu-Chek 360 o DC DC Successor of Accu-Chek Compact Plus blood glucose monitoring system with improved ergonomic and attractive user interface. Customisable PC-based data management software designed for wide range of uses, from downloading data to performing detailed analyses Global 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 60 Apr. 18,

31 Exchange rate impact on sales growth Lower CHF growth rate driven by weaker USD and JPY 1.2 % 0.3 % 0.0 % -2.1 % 17.4 % -0.7 % -0.3 % -0.2 % 15.6% Local sales growth (Q1 07 vs. Q1 06) CHF sales growth (Q1 07 vs. Q1 06) EUR Other AS-PAC USD JPY LAT-AM CAD YTD and 2006 CHF / EUR Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % Monthly averages 2006 Year-To-Date averages 2006 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 62 Apr. 18,

32 2007 YTD and 2006 CHF / USD Monthly averages Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year-To-Date averages % 2007 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 63 r Apr. 18,