Roche shares tumbled to rank among the worst performers in European trade on Monday following news of the failure of trials for its skin cancer treatment Zelboraf. The disappointing results came alongside confirmation that similar products from compatriot and rival Novartis had met their aims.
Roche shares were trading 1.35 percent underwater by 12:30 p.m. London time as analysts considered the implication for the company in light of the separate recent trial failure of the company's eye treatment lampalizumab.
The fact that the disappointment is the second notable failure from the Genentech stable – the R&D business that was acquired in 2009 and is run as an independent entity within the Swiss pharma giant alongside Roche's own R&D unit – is concerning, John Rountree, partner at Novasecta, told CNBC on Tuesday.
"This is another blow and people will start to question that ability of that part of the organization to deliver really quality development," he highlighted, adding that analysts will need to reconsider the overall company's sales forecasts.