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Also has an effect on the stock exchange: Roche shares: What happens next with the pharmaceuticals title – the prospects | message


by Sven Parplies, Euro on Sunday

D.he Swiss pharmaceutical company Roche wants to bring a new rapid corona test to market by the end of the month. The antigen test is supposed to deliver reliable results within 15 minutes and will be particularly helpful in the upcoming flu season. Initially, 40 million pieces are available per month. At the end of the year, the amount is to be more than doubled.

The news was well received on the stock market, with the share rising slightly. The test will help the group to accelerate the growth of the diagnostics division and to expand the margins in this division, calculates the Swiss bank Vontobel. The antigen test is Roche’s tenth product in the fight against the Covid-19 pandemic.

Diagnostics, which provides around a fifth of Group sales, is an important pillar for Roche during the pandemic: In the second quarter, the division’s sales grew by two percent. The molecular diagnostics sub-division even increased by more than 60 percent in the first half of the year. The situation is different with the main business with pharmaceuticals: Because many people have postponed visits to doctors and operations for fear of infection, the demand for a number of drugs has declined. In the pharmaceutical division, business is therefore at six in the past quarter

The investment bank JP Morgan recently calculated that Roche will generate at least one billion francs in sales with Covid-19 tests in the second half of the year. However, this would be offset by charges of 1.2 billion in the pharmaceutical business. Roche should be able to close this gap by increasing efficiency.

For the year as a whole, the group aims to increase its sales, adjusted for exchange rate effects, in the low to mid single-digit percentage range, and core earnings per share in a similar range.

Roche is particularly popular with investors as a supplier of dividends. In March, the group raised the dividend for the 33rd time in a row. For the current year, the board of directors has announced an increase. Analysts calculate that the payment will increase slightly from nine to 9.25 francs per share. However, investors from Germany can only trade Swiss shares on their home exchange in Zurich.

Healthy: Roche is one of the most reliable dividend stocks in Europe. Weak phases in the share remain buying opportunities.


More news about Roche AG (profit participation certificate)

Image sources: lucarista /, SEBASTIEN BOZON / AFP / Getty Images

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