Product Launches Restrict Roche In First Half

First half operating profits at Roche rose only 5 per cent to SFr2.06 billion (£850 million) but the Swiss drugs, vitamins and diagnostics group Friday held out the prospect of strong growth to come thanks to new product launches and recent acquisitions. The group blamed 'substantially higher expenditures for the launch of new drug products, the cost of integrating Tastemaker, the US flavours company bought in February this year for $1.1 billion (£670 million), and sustained pricing pressures in major markets'' for the modest operating result. Operating margin fell by three percentage points to 22.1 per cent. The group's financial investment performance again helped offset the weak operating outcome, with non-operating income rising 18 per cent to SFr926 million. As a result, net profit advanced 10 per cent to SFr2.43 billion. This was still weaker growth than that at many of the company's US and UK rivals this year as well as being at the lower end of the range of analysts' forecasts.