Roche Maintains Aggressive Dealmaking Strategy, Reports Strong Q3 Performance

Roche, the Swiss pharmaceutical giant, has reaffirmed its commitment to an ambitious business development strategy following a series of high-profile deals in 2025. The company's CEO, Thomas Schinecker, emphasized this stance during a third-quarter earnings call, stating, "We're not done with BD," and indicating that Roche will continue to pursue growth opportunities through strategic partnerships and acquisitions.

Recent Acquisitions and Partnerships

Roche has already made significant moves in the pharmaceutical landscape this year. The company recently acquired 89bio for $3.5 billion, a deal centered on pegozafermin, an FGF21 analog being developed for metabolic dysfunction-associated steatohepatitis (MASH). Teresa Graham, CEO of Roche's Pharmaceuticals unit, expressed confidence in the asset's potential, describing it as "best-in-disease." Two Phase III trials for pegozafermin are currently underway, with data expected in 2027 and 2028.

In addition to the 89bio acquisition, Roche's subsidiary Genentech entered into a $2.1 billion molecular glue pact with Orionis Biosciences in May. This collaboration, which includes an upfront payment of $105 million, focuses on developing small-molecule protein degraders for cancer treatment. Furthermore, Chugai Pharmaceuticals, majority-owned by Roche, committed over $1 billion to partner with AI-focused Gero in July, aiming to develop novel therapies for age-related diseases.

Financial Performance and Product Highlights

Roche reported strong financial results for the first nine months of 2025, with total sales reaching CHF 45.862 billion ($57.5 billion), representing a 7% year-on-year increase at constant currencies. While this figure fell slightly below analyst expectations, it demonstrates robust growth in challenging market conditions.

The company's pharmaceutical division continued to be the primary driver of earnings, growing 9% to CHF 35.55 billion ($44.54 billion). Standout products included:

• Ocrevus (multiple sclerosis): CHF 5.19 billion ($6.5 billion), up 7% year-on-year
• Hemlibra (hemophilia A): CHF 3.52 billion ($4.41 billion)
• Vabysmo (anti-VEGF antibody): CHF 3.06 billion ($3.83 billion)

The diagnostics division also showed growth, albeit more modest, increasing 1% to reach CHF 10.31 billion ($12.92 billion) for the period.

Future Outlook and Industry Challenges

Despite the positive financial results, Roche faces ongoing challenges, including evolving drug pricing policies in the United States. Schinecker acknowledged ongoing discussions with the U.S. government but refrained from providing specific details.

Looking ahead, Roche maintains its forecast for total sales growth in the mid-single-digit range for the year. The company has also raised its core earnings-per-share outlook to the high-single- to low-double-digit range, signaling confidence in its performance for the remainder of 2025.

As Roche continues its aggressive dealmaking strategy and maintains strong product performance, the company appears well-positioned to navigate the complex landscape of the pharmaceutical industry. However, ongoing regulatory challenges and the need for continued innovation will likely shape the company's strategy in the coming months and years.