Monday, April 30, 2018

Roche Drifting Without Perception-Changing Data

Once tapped as the future belle of the ball due to its deep pipeline of potential add-on/combo oncology therapies, Roche (OTCQX:RHHBY) has continued to lag rivals like Merck (MRK) as investors grow more concerned that Roche's PD-L1 antibody Tecentriq will have trouble standing out from the crowd and become yet another disappointing offset to looming biosimilar erosion.

It's still early (a familiar fallback position for disappointed bulls), but Roche really needs strong data to close the gap with Merck's Keytruda, even if it is at least in part a perception gap. Roche could also really use another blockbuster or two from its pipeline, particularly one that doesn't have abundant competition. Although I continue to believe that the market is not giving Roche its due, the reality, for now, is that looming biosimilar-driven revenue erosion is a hard cloud for Roche to get out from under and it is likely to take time for perceptions to shift.

Read more here:
Roche Drifting Without Perception-Changing Data

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