Investing.com — Roche Holding AG (OTC:) Participation (SIX:) has posted a dip in first-quarter sales as the pharmaceutical group was hit by a stronger Swiss franc and flagging demand for its COVID-19 medicine Ronapreve.

The Swiss franc was one of the world’s best performing currencies in 2023 against the U.S. dollar, weighing on exporters like Roche who rely heavily on sales in the United States.

When reported in Swiss francs, the company’s January to March sales were 6% lower compared to the year-ago period at CHF 14.40 billion, meeting analysts estimates. At constant exchange rates, group sales rose by 2%.

But Roche, which does not release quarterly earnings, backed its annual guidance for an uptick in sales and adjusted earnings in the mid single digit percentage range at constant exchange rates, with Chief Executive Thomas Schinecker adding that sales have been solid to begin 2024 despite the weakness in Ronapreve.

In particular, Roche cited continued optimism around its Vabysmo eye treatment, saying the medicine has now become its “biggest growth driver” and has helped offset the decline in Ronapreve sales.

Analysts at Morgan Stanley added in a note to clients that a moderation in foreign exchange headwinds thanks in large part to a stronger greenback should reverse “negative earnings momentum.”