Roche (OTCQX:RHHBY) (OTCQX:RHHBF) doesn’t have to deal with network TV executives, but investors can nevertheless be forgiven if recent clinical failures collectively feel more than a little like being nibbled to death by ducks.
As I’ve said many many times in the past, failure is part and parcel of drug development, and Roche isn’t exempt just because it’s big. Likewise, Roche has taken some pretty big swings at notoriously difficult diseases, and I frankly commend them for doing so when we’ve seen many other drug company CEOs go the route of lackluster and instead try to grow through cost-focused M&A and/or outsized price increases.
Still, the situation is what it is and Roche could use some wins. Biosimilars are still biting hard into the business and the pharmaceutical business is one where patent expiry is always a threat – whether that’s today or down the road a few years. Low-to-mid single-digit growth can still support a worthwhile fair value and expected return from here, but sentiment could really use a boost.
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Roche Continues To See Mixed Results, At Best, From The Clinic
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