Roche Holding AG

Yeah, thanks a lot, Henrik, for the nice introduction.

Just for those who join us here over the video, this is all COVID approved here by our BASA side. I just wanted to make sure that you don't get the wrong impressions that we have here. The meters counted. My first comment, the second one is if you have, we've got some questions, how you can ask questions. So one part Henrik was alluding to, of course, I mean, if you have questions, I want to have another way. I have my email address. You can drop me an email and then I will read it to the people here. With this one, I would say over to you, Sabrin. Thank you, Karl. Thank you.

Thank you, Karl. Also, a warm welcome from my side for our Q3 sales briefing. If we can go right to slide six, please. So overall, if you look at the third quarter, it's good to see that the business has recovered. You remember in the second quarter, we had a decline, very much driven by the lockdown, which led to delays in doctor visits and hospital stays. That has improved and it's very much reflected in our business. On the pharma side, actually, a very strong quarter in terms of our pipeline progress with three new medicines being launched in one quarter in the United States. That's pretty remarkable. Also, a number of pivotal trials starts in Q3, so good progress on that front. On the diagnostic side, of course, all about increasing manufacturing capacities for COVID vaccines. You know, that demand is still outstripping by far the industry supply. And as we ramp up production, you see this now reflected in the sales dynamics as well. If we can go to the next slide, please. Pharma down 1% in locally currencies for the nine months. Diagnostics up 9%. Coop with again 1% growth in local currencies. If we can go to the next slide please. Here the quarterly development again as I mentioned. Let's have a deeper look into this on the next slide. So what you really see is two main factors which have driven the recovery. On the one hand continued strong demand for our newly launched medicines, up by 32%, actually compensating for the decline due to the entry of biosimilars. And then on the other hand, the increased dynamics on the diagnostic side with actually an 18% growth. If we go to the next slide. That is something I'd like to... just spend a moment on that's the development in China and what you see here is overall on a group level a minus seven percent decline in China versus previous year and what you can see is that the business is growing quarter over quarter but it is declining versus last year so where's this coming from one of the main reasons here is really capacity constraints in in the hospitals I mean, anyone of you who has been to a Chinese hospital knows how crowded typically those hospitals are. I mean, patients very often kind of being next to each other, even in the corridor. And with COVID-19, obviously, and social distancing, et cetera, capacity in the so-called tier one hospitals where most of our business is, has been constrained and that of course has directly an impact both on our pharmaceutical business and on our diagnostics business. So it's really a lot about constraints we have just from a capacity point of view and we are facing we and actually the industry overall. Now what I'd also like to point out here because this is important in terms of our outlook for the full year is fourth quarter sales last year, which were relatively low. And the reason, as you remember, is we had these inventory adjustments in China. So I would argue that we should see a good development in China into the fourth quarter, partly because, you know, the country is adapting and the healthcare system is getting back to normal, but partly also because simply we have a base effect here versus previous year. So if we go to the next slide, here you see again the different elements of the growth, very much of what I just said, driven by the new medicines and diagnostics, and you see the offsetting effect with the entry of biosimilars. But also here, as we would have indicated to you at the beginning of the year, even though the impact from the entry of biosimilars, of course, is really significant, as you can see, we overcompensate, maybe more than compensate that decline by the newly launched medicines. If we can go to the next slide, please. As a consequence of that portfolio shift, we have now 40% of our pharma sales coming from the new medicines. And of course, that will quickly go up as we see this continued growth of the new medicines on the one hand and the further erosion of our mature products, Avastin, Herceptin, and not Terra specifically, right, if we go on. As I mentioned, a really strong quarter in terms of pipeline progress. So beyond the approvals of the new medicines, here you can see a long list of new pivotal study starts. And I think this is, I mean, this is pretty remarkable in itself, but it's even more remarkable if you think about all the COVID-19 constraints. So in spite of the pressure in the healthcare system, we have been able to keep those programs running and move them forward and there are really, really important programs here, as you can see with Thiragolumab, for example, Antitichit or SIRT, potentially big opportunities we want to drive forward. We can go to the next slide. Thomas will spend much more time, obviously, on the testing side. Let me just highlight here that we recently launched rapid antigen test. We only launched it towards the end of the quarter, so that's one of the reasons why we are very confident for the fourth quarter because demand for that is higher than the supply for the industry overall and certainly for us. So it's only a matter of how much can we produce and of course we have a good line of sight of what we can produce in the fourth quarter. And that will, of course, add to the sales dynamics in diagnostics beyond the point of care antigen test. I just like to highlight that as well. We will also bring an antigen test to the market for the clinical lab. That is, we have announced it now that we will do this by the end of the year. And that is very meaningful because We have, as you know, constraints on the PCR tests. We will never be able to provide, I mean, we as an industry will never be able to provide a PCR test for the masses. It's just not possible. But antigen tests can be scaled up. And by bringing those antigen tests also to the central lab, to the high throughput systems on our established platforms, that will be a big relief for the overall healthcare system. If we move on. Yeah, to close with the outlook, we have recovered in the third quarter, but I think even more important, we are very confident about the dynamics into the fourth quarter. And it has a lot to do, of course, with the good progress with the newly launched medicines and new, just newly launched medicines on the pharma side, on the one hand, with the COVID-19 testing, of course, as we further ramp up manufacturing capacities and some base effects we will benefit from in particular in China. Good. And with this, I hand over to Bill. Over to you, Bill. Thanks, Severin.