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Roche boosts dividend on higher profits

Swiss drug giant Roche said on Wednesday its net profit rose by two percent last year to 9.8 billion francs ($10.6 billion) and said it was increasing its dividend.

Published: 30 January 2013 09:45 CET

Roche boosts dividend on higher profits

Photo: Roche

The Basel-based company said its overall sales rose by four percent measured at constant exchange rates to 45.5 billion francs, aided by strong sales of cancer drugs and diagnostic tests to laboratories.

The results were slightly better than the consensus of analysts forecast by Swiss financial news agency AWP, which expected net profit of 9.65 billion francs on sales of 45.4 billion francs.

Last year "was a very good year for Roche," chief executive Severin Schwan said in a statement.

"We met our financial targets, grew faster than the market, and our strong pipeline positions us well for further growth," he said.

Schwan pointed to the approval last year of Roche's breast cancer medicine Perjeta, with another breast cancer treatment nearing market.

Roche said it expected similar sales growth in 2013 with core earnings to rise even faster.

The company's board proposed increasing the dividend for 2012 by eight percent to 7.35 francs and foresaw increasing the dividend further in 2013.

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A demonstrator smokes a joint at the pro-cannabis Hanfparade in Berlin in August 2021.

A demonstrator smokes a joint at the pro-cannabis Hanfparade in Berlin in August 2021. Photo: picture alliance/dpa | Annette Riedl

The Social Democrats (SPD), Greens and the pro-business Free Democrats (FDP) are set to engage in coalition talks in a bid to become the next German government. And the future of cannabis will likely be one of the topics to be thrashed out.

In drug policy, the three parties are not too far apart in their positions. So it’s possible that the drug could be decriminalised.

However, nothing is set in stone and the parties still haven’t come to a common line on the question of where and to what extent cannabis could be accessed.

The leader of the Liberal FDP, Christian Lindner, has now come out in favour of allowing cannabis products such as hashish to be sold in a controlled manner.

Consumers should be allowed “to purchase a quantity for their own use, for example, in a pharmacy after health education,” Lindner told a live broadcast on German daily Bild on Sunday.

Lindner said he was sceptical about the sale in “coffee shops” according to the Dutch model. “I am in favour of controlled distribution, and therefore health education must be able to take place,” he said.

READ MORE: Patients in Germany still face hurdles accessing medical marijuana

People in the Netherlands can access cannabis products in coffee shops under the country’s tolerant drugs policy. However coffee shops have to follow certain strict conditions. For instance they are not allowed to sell large quantities to an individual.

Lindner said his main aims were about “crime and health prevention” and not with “legalising a right to intoxication”.

It’s not clear if Lindner advocates for prescription-only cannabis for medical use, or an over-the-counter model.

The FDP previously said that they they are in favour of the creation of licensed shops. Their manifesto highlights the health benefits, tax windfalls and reallocation of police resources that legalisation would create.

The Green party also want licensed shops, as well as a whole new approach to drug control starting with the controlled legalisation of marijuana. The Greens state that “strict youth and user protection” would be the centre point of their legislation and hope to “pull the rug from under the black market”.

The SPD also want a reform of Germany’s prohibition stance – but are more cautious than the smaller parties on the legalisation aspect. They would like to initially set up pilot projects.

READ ALSO: Why Germany could be on the brink of legalising cannabis

Controversial topic

So far, the sale of cannabis is officially banned in Germany. Possession of cannabis is also currently illegal across the entire country. Those caught carrying the substance can face anything from a fine to five years in jail.

However, the justice system generally looks away if you are caught carry small quantities for personal use unless you have a previous conviction.

The definition of personal use differs from state to state, with Berlin having the most liberal rules and Bavaria the tightest.

It is estimated that around four million people regularly use cannabis in Germany.

Representatives of police unions in Germany have warned against legalisation. They argue that cannabis is an often trivialised drug that can lead to considerable health problems and social conflicts, especially among young people.

Oliver Malchow, from the GdP police union, said that “it doesn’t make any sense to legalise another dangerous drug on top of alcohol”.

The current Ministry of Health also continues to oppose the legalisation of cannabis, a spokesperson for Minister Jens Spahn (CDU) made clear. Cannabis is a dangerous substance and therefore legalisation is not advisable, the spokesman said.

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