We seem to be able to count on Roche to pursue plans to differentiate itself from the herd. Unlike many of its competitors who have stated an intention to pursue generics as diversification strategy (see previous post), Roche will remain true to its roots providing innovative medicines. It plans to expand its historic franchise in oncology drugs to include new medicines in inflammation, CNS disease, and metabolic disorders.
Roche firmly rejects the idea of "diversifying" into generic drugs, consumer health or animal health. Says CEO Severin Schwann, "A lot of people call it diversification. I call it giving up. Call me biased, but I really believe we have one of the best industry pipelines." That's the spirit of leadership!
Roche still spends 21% of its revenues on R&D, and 57%of their current revenues come from oncology drugs. The new shift to the three therapeutic areas mentioned above will require Roche to form some partnerships when it comes time to go to market - basically sales force deals to access physicians beyond its base of oncology specialists.
Says Schwann, "We go where science takes us." He also talks about Roche retaining its faith in innovation - which already separates it from many of its following rivals. (See FT.com).
Posted by Bruce Lehr October 28th 2010.