Roche: potential underestimated by the market

18. December 2023
-IAM, News

Olivier Aeschlimann, Senior Financial Analyst

The pharmaceutical company was affected by a series of bad news about clinical trials (Alzheimer’s, tiragolumab, giredestrant, gene therapy on Duchenne muscular dystrophy) which caused the stock to significantly underperform compared to the sector for more than ‘a year. As a result, Roche currently looks very cheap given a promising pipeline, particularly in the field of oncology. Furthermore, the company maintains a very defensive nature thanks to its diagnostic activities (around 25% of sales). This division is in fact a world leader in in-vitro diagnostics. In addition, Roche began to use its financial resources to make acquisitions: the biotech Telavant and Carmot Therapeutics, a company specializing in the fight against obesity. These elements make us believe that Roche benefits from significant growth potential which is not yet recognized by the market.