Roche Considers Direct-to-Patient Sales Model to Lower US Drug Prices

Roche's CEO Thomas Schinecker discussed selling drugs directly to patients with US officials to lower prices. The pharmaceutical giant reaffirmed its year expectations despite tariff uncertainty. Roche reported 7% growth in first-half sales, driven by its pharmaceuticals division. The diagnostics division saw no growth due to healthcare-pricing reforms in China.

Roche Holding AG (SIX:ROG) has initiated discussions with the U.S. government to explore direct-to-patient sales as a strategy to circumvent the influence of pharmacy benefit managers (PBMs) and potentially lower drug prices. The move comes on the heels of the company's strong first-half 2025 financial performance, which saw 7% sales growth driven by its pharmaceutical division [2].

CEO Thomas Schinecker expressed his dissatisfaction with the current system, stating, "Something has to be done here to take out these people that are just trying to make money." He suggested that direct sales could reduce prices by up to 50% across Roche's portfolio [1]. This announcement follows a trend where some of Roche's peers, such as Eli Lilly (LLY), Novo Nordisk (NVO), and Pfizer (PFE), have already established direct-to-consumer platforms [1].

Amidst the ongoing debate over drug prices in the U.S., Roche's initiative is notable. The company reported CHF 30.9 billion in group sales for the first half of 2025, a 7% increase at constant exchange rates. The pharmaceutical division, which contributed CHF 24.0 billion, saw a 10% growth at constant exchange rates, while the diagnostics division remained flat due to healthcare pricing reforms in China [2]. Despite these challenges, Roche maintains its full-year 2025 guidance for mid-single-digit sales growth and high-single-digit core EPS growth at constant exchange rates [2].

The move to direct sales is part of Roche's broader strategy to enhance its R&D productivity and maintain growth momentum. The company is redirecting approximately CHF 1 billion to transformative programs and productivity initiatives, which has already resulted in accelerated development timelines for key assets [2]. This initiative aligns with Roche's plan to invest $50 billion in U.S. R&D and manufacturing by the end of the decade.

Roche's share price reacted positively to the announcement, rising 1.1% in Zurich on Thursday morning. Analysts praised the company's cost control and strategic initiatives but noted the negative impact of currency fluctuations [3].

References:
[1] https://seekingalpha.com/news/4471308-roche-eyes-direct-us-drug-sales-avoid-pbms
[2] https://www.investing.com/news/company-news/roche-hy-2025-slides-7-sales-growth-driven-by-pharmaceutical-division-93CH-4149660
[3] https://www.marketscreener.com/news/roche-share-up-with-2025-forecasts-confirmed-ce7c5cd3dc89f323