Finance Report
`2015
`
`
`
`Mylan v. Genentech
`IPR2016-01693
`Genentech Exhibit 2028
`
`

`
`Roche Group | Financial Review
`
`Pharmaceuticals Division operating results
`
`Pharmaceuticals Division operating results
`
`
`
`IFRS results
`Sales
`Royalties and other operating income
`Cost of sales
`Marketing and distribution
`Research and development
`General and administration
`Operating profit
` – margin, % of sales
`
`Core results 1)
`Sales
`Royalties and other operating income
`Cost of sales
`Marketing and distribution
`Research and development
`General and administration
`Core operating profit
` – margin, % of sales
`
`Financial position
`Net working capital
`Long-term net operating assets
`Net operating assets
`
`Free cash flow
`Operating free cash flow
` – margin, % of sales
`
`1) See pages 131–134 for definition of Core results and Core EPS.
`
`Sales overview
`
`Pharmaceuticals Division – Sales by therapeutic area
`
`Therapeutic area
`Oncology
`Immunology
`Infectious diseases
`Ophthalmology
`Neuroscience
`Other therapeutic areas
`Total sales
`
`2015
`(CHF m)
`
`37,331
`2,119
`(10,249)
`(6,154)
`(8,367)
`(1,677)
`13,003
`34.8
`
`
`37,331
`2,119
`(7,900)
`(6,066)
`(8,134)
`(1,295)
`16,055
`43.0
`
`
`4,437
`26,179
`30,616
`
`
`14,482
` 38.8
`
`2014
`(CHF m)
`
`36,696
`2,273
`(8,013)
`(6,130)
`(8,380)
`(2,142)
`14,304
`39.0
`
`
`36,696
`2,273
`(7,551)
`(5,974)
`(7,876)
`(1,567)
`16,001
`43.6
`
`
`5,888
`25,060
`30,948
`
`
`14,821
`40.4
`
`% change
`(CHF)
`
`+2
`–7
`+28
`0
`0
`–22
`–9
`–4.2
`
`
`+2
`–7
`+5
`+2
`+3
`–17
`0
`–0.6
`
`
`–25
` +4
`–1
`
`
`–2
`–1.6
`
`% change
`(CER)
`
`+5
`–11
`+29
`+3
`0
`–21
`–3
`–3.1
`
`
`+5
`–11
`+7
`+4
`+4
`–17
`+5
`+0.2
`
`
`–18
`+6
`+1
`
`
`–5
`–4.1
`
`2015
`(CHF m)
`23,661
`6,228
` 2,051
` 1,520
`648
` 3,223
` 37,331
`
`2014
`(CHF m)
`22,797
`5,087
`3,194
`1,701
`726
`3,191
`36,696
`
`% change
`(CER)
`+8
`+24
`–34
`–15
`–1
`+4
`+5
`
`% of sales
`(2015)
`63
`17
`5
`4
`2
`9
`100
`
`% of sales
`(2014)
`62
`14
`9
`5
`2
`8
`100
`
`Pharmaceuticals Division sales increased by 5% at CER, with strong growth in oncology and immunology products. Sales growth was
`primarily driven by the following products: Herceptin, Avastin, Perjeta, Esbriet, MabThera/Rituxan, Actemra/RoActemra and Kadcyla.
`These products together contributed CHF 3.2 billion at CER to sales growth.
`
`The growth of 19% in the HER2 franchise resulted from increased demand for Perjeta and Herceptin in combination therapy and
`continued uptake of Kadcyla. Avastin sales grew in all regions driven by increased use in recently launched indications. MabThera/
`Rituxan sales also increased, notably in the US. Sales in immunology increased due to demand for Esbriet, following its US launch in
`late 2014, due to the growth of Actemra/RoActemra in all regions in its subcutaneous formulation and Xolair, which grew by 25% due
`to increasing uptake for the recently launched indication chronic idiopathic urticaria.
`
`10 | Roche Finance Report 2015
`
`

`
`Sales of Pegasys declined due to competition from a new generation of treatments and sales of Valcyte/Cymevene and Xeloda fell due
`to generic competition. Tamiflu sales were lower due to a relatively mild influenza season in late 2015 compared to the severe season in
`late 2014, while sales of Lucentis declined due to strong competition.
`
`Financial Review | Roche Group
`
`Product sales
`
`Pharmaceuticals Division – Sales
`
`
`
`Oncology
`Avastin
`Herceptin
`MabThera/Rituxan 1)
`Perjeta
`Tarceva
`Kadcyla
`Xeloda
`Zelboraf
`Others
`Total Oncology
`
`Immunology
`Actemra/RoActemra
`MabThera/Rituxan 1)
`Xolair
`CellCept
`Pulmozyme
`Esbriet
`Others
`Total Immunology
`
`Infectious diseases
`Tamiflu
`Pegasys
`Valcyte/Cymevene
`Rocephin
`Others
`Total Infectious diseases
`
`Ophthalmology
`Lucentis
`Total Ophthalmology
`
`Neuroscience
`Madopar
`Others
`Total Neuroscience
`
`Other therapeutic areas
`Activase/TNKase
`Mircera
`NeoRecormon/Epogin
`Nutropin
`Others
`Total other therapeutic areas
`
`Total sales
`
`2015
`(CHF m)
`
`6,684
` 6,538
` 5,640
` 1,445
` 1,181
` 769
` 513
`214
` 677
` 23,661
`
`
`1,432
`1,405
`1,277
`785
`652
`563
`114
`6,228
`
`
`705
`538
`369
`279
`160
`2,051
`
`
` 1,520
` 1,520
`
`
`275
` 373
` 648
`
`
` 935
`475
`366
`207
`1,240
`3,223
`
` 37,331
`
`2014
`(CHF m)
`
`6,417
`6,275
`5,603
`918
`1,292
`536
`776
`301
`679
`22,797
`
`
`1,224
`1,297
`975
`811
`597
`44
`139
`5,087
`
`
`959
`1,015
`726
`283
`211
`3,194
`
`
`1,701
`1,701
`
`
`292
`434
`726
`
`
`747
`417
`460
` 214
`1,353
`3,191
`
`36,696
`
`% change
`(CER)
`
`+9
`+10
`+4
`+61
`–7
`+51
`–31
`–21
`+5
`+8
`
`
`+23
`+11
`+25
`0
`+10
`Over +500
`–32
`+24
`
`
`–28
`–44
`–45
`+2
`–19
`–34
`
`
`–15
`–15
`
`
`+4
`–4
`–1
`
`
`+20
`+21
`–11
`–8
`–2
`+4
`
`+5
`
`1) Total MabThera/Rituxan sales of CHF 7,045 million (2014: CHF 6,900 million) split between oncology and immunology franchises.
`
`% of sales
`(2015)
`
`18
`17
`15
`4
`3
`2
`1
`1
`2
`63
`
`
`4
`4
`3
`2
`2
`2
`0
`17
`
`
` 2
`1
`1
`1
`0
`5
`
`
` 4
`4
`
`
`1
`1
`2
`
`
`3
`1
`1
`1
`3
`9
`
`100
`
`% of sales
`(2014)
`
`17
`17
`15
`3
`4
`1
`2
`1
`2
`62
`
`
`3
`4
`3
`2
`2
`0
`0
`14
`
`
`3
`3
`2
`1
`0
`9
`
`
`5
`5
`
`
`1
`1
`2
`
`
`2
`1
`1
`0
`4
`8
`
`100
`
`Roche Finance Report 2015 | 11