The ratings on Switzerland-based pharmaceuticals and diagnostics group Roche Holding AG (Roche) reflect the group's excellent business position, based on high growth rates in its pharmaceuticals division, its global No.1 position as a provider of oncology drugs, well stocked late-stage pipeline, and conservative financial profile. The ratings are constrained by Roche's under-representation in the high-margin U.S. pharmaceuticals market and below best-in-class margins in its pharmaceuticals business outside the U.S. Total financial debt was Swiss franc (SFr) 8.4 billion ($6.8 billion) at June 30, 2006. With group sales of SFr19.8 billion in the first half of 2006, Roche ranks among the top 10 global pharmaceutical companies, including its two majority holdings in U.S.-based Genentech Inc. (A+/Stable/A-1) and Japan-based Chugai Pharmaceutical Co.
