Roche Holding AG

Roche is a Swiss multinational healthcare leader founded in 1896, headquartered in Basel. It operates a dual-division model: Pharmaceuticals, powered by legacy brands and a strong oncology franchise, and Diagnostics, one of the world’s largest providers of diagnostic instruments and reagents.

• Scale & Reach: FY 2024 sales hit CHF 60.5 bn (+7% CER), split ~76% pharma / 24% diagnostics 

• Innovation & R&D: Invests ~CHF 13 bn annually (~16–20% of sales), focusing on personalized medicine, oncology, digital health, and companion diagnostics 

• Pipeline Depth: ~120+ clinical programs; late-stage candidates include Trontinemab (Alzheimer’s), astegolimab (COPD), vamikibart, and obesity assets (Petrelintide/CT-388)

• Diagnostics Strength: Leading position in immunodiagnostics, molecular testing, diabetes care, and emerging genomic/UBS mass spec technologies 

• Financial Profile:

  • 2024 core EPS: CHF 18.80 (+7%)

  • Full-year dividend: CHF 9.70 (38 years of increases)

• Strategic Commitments:

  • $50 bn U.S. investment over five years to expand R&D, manufacturing, and job creation (12K+ roles) 

  • Ongoing commitment to global innovation, digital health, and sustainability.

📊 Pitch Deck: Investment Overview

1. Market Opportunity 🌍

• Global oncology, immunology, and diagnostics markets are growing by ~6–9% annually.

• Tailwinds in personalized medicine, AI-enhanced diagnostics, and preventive healthcare.

• Roche’s integrated pharma + diagnostic model positions it uniquely for precision medicine.

2. Competitive Advantages

• Best-in-class pipelines: 59% of revenue now from newer products; key launches like Itovebi and PiaSky in 2024.

• Diagnostics moat: Market leader in in-vitro diagnostics, with innovations in mass spectrometry and genomic testing.

• Deep R&D investment: ~CHF 13 bn annually ensures long-term innovation and differentiation.

• Global scale & manufacturing commitment: $50 bn U.S. build-out enhances supply resilience and geopolitical positioning.

3. Financial Strength & Shareholder Returns

• Revenue growth: +7% CER in 2024; +6% in Q1 2025.

• EPS growth: High single-digit core EPS expected in 2025.

• Dividend reliability: CHF 9.70/year, 38 consecutive increases.

• Strong FCF generation: Solid balance sheet with capacity for M&A, buybacks, R&D.

4. Risks & Mitigants

• Late-stage readouts for Trontinemab, astegolimab, Petrelintide, vamikibart, and giredestrant.

• U.S. expansion progress in R&D/manufacturing amid potential tariff/digital-health reforms.

• Q2/Q3 updates on pharma/diagnostics momentum, especially in personalized medicine and genomic testing.

6. Valuation & Recommendation

• Trading range: ~CHF 260–280, with ~3–4% dividend yield.

• Forward P/E ~15–17×, modest compared to growth potential.

• Core EPS growth projection: high-single-digit (~8–10%) in 2025.

• Recommendation: Buy / Overweight

  • Balanced exposure to innovation, defensive diagnostics, and shareholder-friendly capital deployment.

  • Quality compounder: durable growth + reliable income + strong moat.

✅ Summary 

Why Roche?

1. Integrated Pharma + Diagnostics model = unique edge in precision healthcare.

2. Strong pipeline, R&D-heavy strategy, and innovation-driven diagnostics.

3. Solid financials, dependable dividends, and major U.S. investment.

4. Resilient against biosimilars, pricing pressures, and competition.