Pharma giant Roche reported a first half net profit of 1.29 billion Swiss francs ($957 million) on strong drug sales.
Profits for the first six months of the year shrank 28 percent from the year-earlier period, but were markedly better than the second half and full year 2002 results.
In the first six months of 2002, Roche made 1.8 billion francs. But by the end of the year it had accumulated a 4 billion franc loss — the worst in its 108-year history. The company put most of the blame on a decline in the value of its securities investments and an increase its provision for claims in the U.S. case over vitamin price fixing.
Roche said its sales in the first six months of 2003 rose 4 percent to 15.3 billion francs ($11.3 billion).
Sales in the company's key pharmaceuticals division were up 9 percent. The increase was fueled by rising purchases of Roche's cancer drugs MabThera/Rituxan, Herceptin and Xeloda.
"Roche can look back on a very successful first half-year," chief executive Franz Humer said in a statement. "Efforts to strategically reposition the Roche Group as a solidly financed health care leader with core businesses in pharmaceuticals and diagnostics are progressing as planned."
Roche agreed in September to sell its vitamins unit to Dutch chemical company DSM. European Union regulators gave the Netherlands firm the green light for the euro1.75 billion ($1.98 billion) sale.
The deal is also under review by the U.S. Federal Trade Commission.
"Based on our results for the first six months, we expect to meet the full-year sales and earnings guidance we released early this year," Humer said.
Roche has said it expects double digit growth in local currencies this year. By close of trading in Zurich, Roche shares were up nearly 4 percent at 111 francs ($81.73).
Humer later said Roche is in talks with U.S.-based Igen International but declined to confirm speculation that his company is considering taking over the firm. Igen on Tuesday said the two companies were in talks about a "potential transaction" but would not elaborate.
An acquisition would settle a lengthy legal dispute between the pair and secure Roche's rights to a license held by Igen for an antibody technology used in tests for a range of illnesses.
The companies have been involved in a four-year breach of contract lawsuit over the Igen technology, known as Origen, that Roche licensed and incorporated into much of its diagnostics business.
A U.S. federal appeals court recently overturned most of the $505 million that a lower court said Roche had to pay Igen. But the court allowed Igen to keep the license to its diagnostic procedure.
Igen terminated a licensing agreement with Roche for the technology as a result of the court ruling.
"We have made substantial progress in addressing problems from the past — the sale of the Vitamins Division, Igen and last year's financial results," Humer said Wednesday.
Roche also has faced rumors of takeover plans by its financially healthier crosstown rival Novartis, which in January increased its stake in Roche to 32.7 percent from 21.3 percent. Roche has repeatedly said it plans to stay independent.