BASEL, Switzerland (AP) — Roche Holding AG said Wednesday its net income for 2008 fell by 5 percent because of the strong Swiss franc, falling sales of its anti-flu drug and a drop in income from investments. Full-year net income was 10.8 billion francs ($9.33 billion), down from 11.4 billion francs in 2007, the company said. Net profit attributable to shareholders was 8.97 billion francs ($7.6 billion), an 8 percent drop from 9.76 billion francs the year before. Roche shares dropped 7.8 percent to 150 francs ($129.7) on the Zurich exchange. Sales dropped to 45.6 billion francs ($39.4 billion), 1 percent less than the 46.1 billion in 2007. Roche said sales were harmed by a strong Swiss franc and a sharp decline in orders for anti-flu medicine Tamiflu. Sales of Tamiflu, which governments around the world have been stockpiling to prepare for a possible flu pandemic, declined 68 percent to 609 million francs ($526.6 million) last year, compared with 1.6 billion francs in 2007. The company said it would increase its dividend for 2008 by 9 percent to 5 francs ($4.32) per share. The company registered a net financial income of 0.2 billion francs ($0.17 billion) in 2008, which is 0.6 billion francs ($0.52 billion) less than in 2007 and mostly due to lower interest income on liquid funds and cuts in interest rates, Roche said. Sales in the company’s pharmaceuticals division decreased by 2 percent, while sales at the diagnostics division gained 3 percent. Analysts at Zuercher Kantonalbank said the results failed to live up to expectations, with the diagnostics division in particular performing less well than foreseen. “In these times of economic upheaval it is more important than ever that we adhere rigorously to our strategy,” said Roche CEO Severin Schwan. “We will continue to focus on our core pharmaceuticals and diagnostics businesses,” he said in a statement. Roche on Friday announced a hostile $42.1 billion buyout offer for Genentech Inc.. The California-based company rejected a first $89-per-share offer in July as too low. Roche is now offering $86.5 per share. Analysts have said the lower offer may be an attempt to force talks with what has been a reticent Genentech board and take advantage of the company’s falling share prices amid the global economic crisis. Roche already owns 55.8 percent of Genentech.
