The company posted sales of 18.767 billion francs in 1997.

Roche also said it now expected 1998 group net income to rise from the 4.3 billion Swiss francs profit before special charges it posted in 1997.

The company had earlier voiced concern of a temporary dilution of profits due to the acquisition of drugs and diagnostics group Boehringer Mannheim in its $10.2 billion takeover of Corange Ltd and food flavourings manufacturer Tastemaker.

Roche said 1998 sales in its pharmaceuticals division rose to 14.378 billion francs, an increase of 19 per cent in Swiss franc terms and 22 per cent in local currencies.

Diagnostics sales increased to 4.613 billion francs from 966 million francs in 1997. Sales of vitamins and fine chemicals dipped five per cent in Swiss franc terms to 3.63 billion francs while sales in its fragrances and flavours division rose six per cent in franc terms to 2.039 billion.

Equity analysts have expected sales to rise around 31 per cent, fuelled in part by the acquisition of Boehringer Mannheim, which was consolidated from January 1, 1998. Fragrances and flavours includes Tastemaker from April 1, 1997.

Total sales do not include sales by DePuy, which Roche divested.

"Roche expects consolidated net income for 1998 to exceed year-earlier results (4.3 billion Swiss francs before special charges)," the company statement said.

"At the start of 1998 the possibility of a temporary dilution of profits due to the acquisition of Boehringer Mannheim and Tastemaker could not be ruled out," it said.

But the company said it now expected stronger group net income for rapid integration of the group's newly acquired businesses and a good non-operating result (despite an acquisition-related decline in liquidity and negative currency effects)."

Meanwhile the company said it would file additional data trials of its anti-obesity drug Xenical with the the US Food and Drug Administration within days in a bid to win the US marketing approval. "Roche will be filing this data with the FDA within the next few days.

The FDA last May requested more data on the drug, which equity analysts see as a potential blockbuster, before granting final approval for Xenical, which has already been launched in more than 20 countries. Roche said demand for Xenical had exceeded especially in Europe.

"It is certainly selling significantly better than we expected. We launched in the first countries toward the middle of September, so we have virtually only a (financial) quarter of sales of Xenical and those sales are way in excess of 100 million Swiss francs, ths company said.

It noted this was showing up in quarterly growth rates.

"In the last quarter our sales were growing at 25 per cent and they were growing at 19 per cent in the second quarter and 18 in the third. This hopefully shows a trend in acceleration of our sales growth," the company said.

It said the new clinical data on Xenical needed for final US regulatory approval would be submitted to the US Food and Drug Administration on Monday.

"It looks good. We are very confident," the company added.

The company noted it was difficult to forecast how long it might take the FDA to decide on Xenical. "But we do hope we can launch during the first half of this year."

It declined to make a sales forecast for the drug, but added that we are confident seeing what we have achieved in the markets where we have launched so far. Xenical was launched in Brazil last week.

On other subjects, the company played down speculation that Roche could be swept up in the wave of mergers and acquisitions in the pharmaceuticals sector.

"It is important for a company of our size -- having the critical mass, being among the leaders of the group -- to clearly focus on maximising the results from what we have, and that is what we are trying to do."

"If something comes along we'll take a look at it and analyse it. We've always had an opportunistic mood and we'll always remain in that mood, but I think that is not the focus of our business nor of our strategy."