Roche ‘misses profit forecasts for 2014’

Global healthcare company Roche Holding has reported a 16 per cent drop in annual profits for 2014, but said it expects sales and profits to increase this year.

The Swiss drugmaker predicts that sales will enjoy low-to-mid single digit growth during 2015, when factoring in the effect of foreign currency exchange rate fluctuations.

In addition, earnings-per-share – considered to be a key measure of profitability – are forecast to rise ahead of sales, according to Roche.

Severin Schwan, chief executive of the firm, said: "We made good progress in 2014 with solid growth in both divisions driven by our newly-launched medicines and diagnostic test."

Roche confirmed that net income attributable to shareholders for last year fell by 9.33 billion Swiss francs (6.80 billion pounds).

Intangible impairments, or declines in the value of assets, rose by 1.1 billion Swiss francs after the "reassessment" of an unspecific product in the tissue diagnostics arm of the business.

According to the drugmaker, profits were negatively impacted by cuts in US laboratory test reimbursements and the restructuring of some of Roche's debt.

Earlier this month, Mr Schwan said that the recent surge in value of the Swiss currency would affect the firm's results, but didn't go into detail. He remarked: "I wish I had a crystal ball."