WEBVTT - Roche CEO Thomas Schinecker Talks Blockbuster Cancer Pill, Earnings

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Well pleased now to be joined by the CEO of Roach,

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<v Speaker 2>Thomas Shineka Thomas, good morning, Thank you for your time.

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<v Speaker 2>One of the biggest challenges for the business right now

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<v Speaker 2>is it the generics or the swissy.

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<v Speaker 3>So actually, if you look at our growth rate in

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<v Speaker 3>the first quarter, we are growing six percent in constant

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<v Speaker 3>change rates and it's seven percent even on the pharmer side.

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<v Speaker 3>So of course if you look at Swiss Franks, the

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<v Speaker 3>number looks different. However, Swiss Frank also appreciate it means

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<v Speaker 3>it's worth a lot more. If we look into our

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<v Speaker 3>sales growth in US dollars, we're at plus nine percent.

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<v Speaker 3>We have most of our business in the US, but

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<v Speaker 3>also we have most of our debts and most of

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<v Speaker 3>our spending in the US. For example, just recently we

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<v Speaker 3>did an M and A deal in the United States.

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<v Speaker 4>So I see that very relaxed from that.

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<v Speaker 3>Perspective, because you know, we have a very good headch

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<v Speaker 3>across the regions. Because there is also where I was

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<v Speaker 3>spending years.

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<v Speaker 2>All on very relatively in terms of in.

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<v Speaker 3>Terms of your point on on biosimilar in the first quarter,

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<v Speaker 3>I think the biosimilar effect was almost non existent. So

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<v Speaker 3>I don't know what you mean with all the products.

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<v Speaker 2>Okay, your relatively relaxed about that, about the currency effects,

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<v Speaker 2>and it seemingly as well the biosimilars talk to us

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<v Speaker 2>about the impact. Are you seeing any impact at all

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<v Speaker 2>as a result of the geopolitics as a result of

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<v Speaker 2>the war in Iran? On supply chains, on access to

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<v Speaker 2>two inputs? Do you expect how to put up prices?

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<v Speaker 2>What is what is the impact on Rosa's results of

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<v Speaker 2>the uncertainty we're seeing in the Middle East.

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<v Speaker 3>So as a company and to a certain parts of

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<v Speaker 3>probably as an industry, we're less impacted by the conflict.

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<v Speaker 4>Enemy is the one.

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<v Speaker 3>The reason is that your energy efficient in the.

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<v Speaker 1>Don't okay, I think we're seeing some slight issues when

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<v Speaker 1>it comes to the microphone. We were just talking about

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<v Speaker 1>your breast cancer treatment, Durrodestra, which I hope I'm not

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<v Speaker 1>mispronouncing the data that came out in March. The stock

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<v Speaker 1>took a significant hit off the back of that, and

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<v Speaker 1>the consensus appeared to be that this drug, which was

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<v Speaker 1>expected to be a blockbuster, may no longer be the

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<v Speaker 1>kind of blockbuster the market had anticipated. Is that the

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<v Speaker 1>correct interpretation of the data.

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<v Speaker 3>Well, if you look across different analyst reports, you will

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<v Speaker 3>see that the majority actually continues to see it as

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<v Speaker 3>a major blockbuster. And why is that the case. We

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<v Speaker 3>had a very strong data in the LIDERA trial that's

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<v Speaker 3>an adjurbent trial, so early setting. And in this early setting,

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<v Speaker 3>this medicine actually reduced to the risk for death or

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<v Speaker 3>reoccurrence of the disease for more than thirty percent.

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<v Speaker 4>And this is just the beginning.

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<v Speaker 3>And in this setting, most of the patients are diagnosed

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<v Speaker 3>actually early, and it takes the medicine for quite a

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<v Speaker 3>long time. So more than seventy percent of the potential

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<v Speaker 3>of this medicine is actually in the setting.

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<v Speaker 4>And if you look at it, this is the first.

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<v Speaker 3>New hormone treatment since more than twenty years, very tolerable,

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<v Speaker 3>so you know this is going to be one of

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<v Speaker 3>our biggest medicines.

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<v Speaker 1>So why do you so do you think that March

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<v Speaker 1>reaction was an overreaction because the stock dropped really quite

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<v Speaker 1>significantly off the back of it.

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<v Speaker 3>Look, let's let's see we are accelerating the approval. We

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<v Speaker 3>are actually looking towards an approval towards the end of

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<v Speaker 3>the year, and we see a lot of potential in

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<v Speaker 3>the medicine, and let's see how it goes. We're comfortable

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<v Speaker 3>with where we are.

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<v Speaker 5>You're comfortable with there you are. You say it's one

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<v Speaker 5>of your going to be one of your best selling medicines, Thomas,

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<v Speaker 5>I wonder how it compares to something like her sceptin then,

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<v Speaker 5>which reached peak sales from around seven big dollars. Can

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<v Speaker 5>you give us any any more clarity about your expectations

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<v Speaker 5>for this one.

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<v Speaker 4>Yeah, it's a very good question.

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<v Speaker 3>So if you look at her septum her sceptam, about

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<v Speaker 3>fifteen percent of all breast cancer patients have heard two

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<v Speaker 3>positive breast cancers, so these are the patients that would

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<v Speaker 3>get such a medicine. When you look at hormone receptor

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<v Speaker 3>positive breast cancer, it's seventy percent of all patients have

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<v Speaker 3>hormone receptor positive breast cancer, so it's a multiple higher.

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<v Speaker 3>And of those the majority are diagnosed in yadrin setting

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<v Speaker 3>about against seventy percent. So you can see that the

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<v Speaker 3>potential to reach many more patients than with her sceptin

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<v Speaker 3>is very clear.

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<v Speaker 5>Okay, so that's the expectation, and this is going to

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<v Speaker 5>be one of the first drugs that you launch under

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<v Speaker 5>new expectations in the United States around most favored nation status.

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<v Speaker 5>Course means that you'll have to price it in the

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<v Speaker 5>US no higher than the lowest price offered incomparable countries.

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<v Speaker 5>So what is your pricing strategy going to be for

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<v Speaker 5>this medicine.

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<v Speaker 3>So we are working very quickly with the FDA to

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<v Speaker 3>get this medicine approved in the United States. And usually

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<v Speaker 3>if you look even prior to the situation that we're

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<v Speaker 3>in now, in the US, we always got approval about

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<v Speaker 3>one year ahead of any other countries in the world.

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<v Speaker 3>So the US was extremely fast here to give access

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<v Speaker 3>to these medicines to patients. And so that means we

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<v Speaker 3>probably have another year and a half to two years

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<v Speaker 3>to see how that will be answered across the other countries.

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<v Speaker 2>Thomas, if other European countries or European nations don't match

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<v Speaker 2>the US pricing, would you withhold the drug?

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<v Speaker 3>You know, we are a company that wants to give

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<v Speaker 3>access to all patients who need these medicines, and a

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<v Speaker 3>clear goal is to give access to patients also in

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<v Speaker 3>these countries. But clearly we'll have a discussion on the

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<v Speaker 3>value of the medicine. I mean, this is a significant

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<v Speaker 3>benefit to patients, thirty percent improvement versus the standard of care,

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<v Speaker 3>much better, tolerable, and so you know, we are having

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<v Speaker 3>those discussions already, but again we have about one and

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<v Speaker 3>a half to maybe two years until this medicine will

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<v Speaker 3>be launched in those countries.

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<v Speaker 1>Thoms is always a pleasure to catch up. Thank you

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<v Speaker 1>very much and d for sharing some of your valuable

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<v Speaker 1>time with us this morning. The Roach CEO Thomas Schineker

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<v Speaker 1>joining us after the results from that company