Swiss pharmaceutical company Roche (OTC: RHHBY) took a hit from a decline in sales of COVID-19 diagnostic and treatment products in 2022, with group sales inching up 2% at constant exchange rates (CER) to 63.28 billion Swiss francs ($68.34 billion). The company's pharmaceutical and diagnostic divisions were both affected, and net income came in at 13.5 billion francs ($14.6 billion), a decline of 6% compared to 2021 under international financial reporting standards (IFRS).

The company expects "the sharp decline in sales of COVID-19 products" to continue through 2023, leading sales to decrease "in the low single digit range," although it also expects its sales of other products to show strong growth. More specifically, Roche anticipates a drop of 5 billion francs ($5.4 billion) in COVID-19-related sales this year -- roughly 8% of last year's total revenue.  

The steep fall-off in sales of products to prevent and treat COVID-19 is a worldwide phenomenon, with almost two-thirds of last year's $100 billion in sales expected to evaporate industry-wide. For Roche, does the near-term softness signify that investors should take a step back?

Continue reading

Source Fool.com