Roche profits fall 17% on restructuring costs

Swiss pharma giant Roche on Thursday said it was on course to meet its objectives despite a 17-percent drop in first half profits to 4.4 billion francs (3.6 billion euros). The figure was linked to restructuring charges associated with the closure of its US research and development facility in Nutley, New Jersey, Roche said in a statement. The Nutley closure -- involving the loss of 1,000 jobs -- will result in savings of $370 million francs (308 million euros), Roche said, although the measure cost 858 million francs (714 million euros). Further streamlining in the company's diabetes and applied science sectors cost 289 million francs and another 530 million francs (441 million euros) was spent on global restructuring, Roche said. Operating profit was up seven percent to 8.6 billion francs (7.2 billion euros) and the company's turnover rose to 22.4 billion euros (18.6 billion), up three percent on 2011, despite downward pressure on prices, particularly in Europe. The pharmaceuticals sector achieved the best results, with operating profit up nine percent. The main growth drivers were cancer medicines, the hepatitis drug Pegasys, rheumatoid arthritis treatment Actemra/RoActemra and the clinical laboratory business. Looking ahead, Roche chief executive Severin Schwan said the restructuring measures would enable the group to invest in clinical trials and that "barring unforeseen events", he expected "low to mid-single digit sales growth".