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UPDATE 1-Roche Q1 sales up 16 pct, raises outlook
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ZURICH, April 18 (Reuters) - Fast-selling cancer drugs boosted first-quarter sales at Roche (ROG.VX) by 16 percent to 11.4 billion Swiss francs ($9.41 billion), the Swiss drugmaker said, raising its outlook for the full year.
Sales in its all-important pharmaceutical division rose by 18 percent to 9.14 billion francs, the world's largest maker of cancer drugs said on Wednesday, driven by new uses of its cancer treatments Avastin, Herceptin, Xeloda and MabThera.
"Based on the successful first three months we raise the outlook for 2007 and expect core earnings per share to grow above group sales," Chief Executive Officer Franz Humer was quoted as saying in a statement.
The group had previously said core earnings per share would grow in line with sales. The company left its sales outlook for 2007 unchanged, forecasting double-digit growth for group and pharma sales in 2007, above market sales growth.
The average forecast in a Reuters poll of 20 analysts was for group sales to rise to 11.12 billion francs, while pharma sales were pencilled in at 8.9 billion.
Roche certificates, its most commonly traded form of equity, have lost 6 percent since its full-year results as analysts worried over future margin growth at the group, which trades at a premium compared to the sector.
Roche has a strong portfolio of new drugs to fight cancer, the fastest-growing area of medical advances, substantial exposure to profitable biotech therapies and few generic challenges in the coming years.
Roche shares trade at about 20 times expected 2007 earnings, well above those of its rivals Novartis (NOVN.VX) at 17 times and GlaxoSmithKline Plc (GSK.L) at 15 times, which analysts say is giving the stock little upside potential.
((Reporting by Douwe Miedema
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