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DIRECTORY OF SINGAPORE PROCESS & CHEMICALS INDUSTRIES 2021/2022
BIOMEDICAL CLUSTER OUTPUT, 2020
S$33.6 billion
challenge for the industry’s broader business. As countries across the world curtailed movement to contain the virus spread, it had adverse impact on the sale of prescription drugs, therapeutics and generics.
Weighed down by Covid-19 disruptions and stronger-than-expected competition for biosimilars for legacy drugs, Swiss drug maker Roche posted a 5% drop in group sales in 2020 to Swiss Franc (CHF) 58.3 billion (US$64.9 billion in 2019). Its pharmaceutical division slipped 2% to CHF 44.5 billion as growth in newer drugs, including Tecentriq, Hemlibra, Ocrevus, Kadcyla and Perjeta, partially offset slower sales for legacy drugs. Sales for its diagnostics division fared better, increasing 14% to CHF 13.8 billion driven by Covid-19 testing. But net income rose 6.8% to CHF 15.07 billion in 2020 due mainly to the lower goodwill write-offs compared to the previous year.
Commenting on the group’s results, Roche CEO Severin Schwan said, “Roche continues to make important contributions to fighting the Covid-19 pandemic. We developed in record time a comprehensive portfolio of diagnostic solutions and entered new partnerships to develop and produce effective Covid-19 medicines.” He added that with the rejuvenated portfolio and the significant progress made in developing its product pipeline, Roche was strongly positioned for future growth.
Pharmaceuticals
S$18.4 billion
Medical Technology
S$14.6 billion
Roche bounced back in 2021 on demand for its new medicines and spike in Covid-19 tests. In the first half, group sales rose 5% to CHF30.71billion. While sales in its Pharmaceuticals Division dipped 7% to CHF21.7 billion due to the continued impact of biosimilars, especially in the US, sales in the Diagnostics Division surged by 49% to CHF9 billion driven by increasing demand forCovid-19testsandrobustmomentumin routine testing. Core net income edged up by 1% to CHF9.5 billion.
Norvatis AG net sales rose 3% to US$48.7 billion in 2020 on higher sales of pharmaceuticals and oncology. Its pharmaceuticals business unit grew 5% driven by Entresto, Zolgensma and Cosentyx while the oncology business unit rose 3%. Net income grew 13% to US$8.1 billion.
Commenting on the full-year results, Vas Narasimhan, CEO of Novartis, said: “Novartis delivered a solid performance in 2020 across our strategic priorities, despite the challenges of Covid-19. Operationally, we grew sales and continued to improve core operating margins for Innovative Medicines.”
In the first half of 2021, the company continued to post strong gains. Net income gained 23% to US$4.9 billion on 7% increased net sales to US$25.4 billion.
As for Pfizer, which has played a key role in combating the coronavirus, its full year revenue edged up by 2% to US$41.9 billion in 2020 while net income dropped 41% to US$9.6 billion following a major corporate restructuring with the completion of the spin-off of its Upjohn business in the fourth quarter, The company said that henceforth it will focus on being an “innovative biopharmaceutical company engaged in the discovery development, manufacturing, marketing, sales and distribution of biopharmaceutical products worldwide”.
Pfizer’s broader business was also challenged by the pandemic. With fewer doctor visits, sale of some of its key products was adversely impacted.
After a challenging year, Pfizer roared back on the success of its Covid-19 vaccine. Net income rose 53% to US$10.4 billion in the first six months of 2021 on 68% increase in revenue to US$33.6 billion. The company has raised its 2021 full-year revenue guidance to US$78 to US$80 billion from US$70.5 to US$72.5 billion previously.
In releasing the company’s 2021 Q2 results, Dr. Albert Bourla, Chairman and Chief Executive Officer, stated: “The second quarter was remarkable in a number of ways. Most visibly, the speed and efficiency of our efforts with
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