How to Invest in Roche and Genentech

The Roche Group (of which Genentech is a wholly-owned member) is traded in the United States as a U.S.-dollar denominated American Depositary Receipt (“ADR”) on the OTCQX International Premier market under the stock symbol: RHHBY.

ADRs are U.S. dollar-denominated securities which represent ownership of equity in non-U.S. companies. The stocks of most foreign companies that trade in the U.S. markets are traded as ADRs issued by U.S. depositary banks.

The Roche ADRs trade, clear and settle just like any U.S.-listed company shares and can be bought or sold through any U.S. registered brokerage (including online brokerages such as TD Ameritrade, E-Trade, Scottrade, etc.). Roche ADR holders are entitled to dividend payments.

The underlying Roche Group security (Roche Holding AG) is listed on the SIX Swiss Exchange (Switzerland’s principal stock exchange) under the stock symbols stock symbols RO.S (voting share) and ROG.VX (non-voting equity security) and adheres to strict financial reporting standards and regulations. Roche’s ADR (RHHBY) represents ownership of equity in ROG.VX, where eight (8) Roche ADRs represent one (1) underlying ROG non-voting equity security.1

Roche Equity Securities

Symbol Security No. of securities Trading / Listing CUSIP / ISIN

RHHBY

US security (ADR)

Note a)

QTCQX

771195104

ROG

Non-voting equity security

702,562,700

SIX Swiss Exchange

CH0012032048

RO

Voting share

160,000,000

SIX Swiss Exchange

CH0012032113

The Roche ADR shares are held in U.S. custody by J.P. Morgan, Roche’s depositary bank.

Since ADRs are based on the common shares of the non-U.S. company, the price of an ADR will often move in sync with the price of the underlying common shares once the ADR to common share ratio and currency rate is considered.

Benefits of the Roche ADR

An American Depositary Receipt (ADR) represents ownership in the shares of a non-U.S. company that trades in U.S. financial markets. The Roche ADR (stock symbol: RHHBY) allows U.S. investors to buy or trade locally in Roche Group shares, which are otherwise listed on the SIX Swiss Exchange.

The Roche ADR is denominated in U.S. dollars, allowing U.S. investors to realize any dividend or capital gains, where applicable, in U.S. dollars. The dividend tax reclaim process is also taken care of by J.P. Morgan, Roche’s depositary bank and simplified for investors (typically reducing dividend tax to the U.S. level, with the actual tax rate depending on the investor’s individual circumstances).

Global custodian safekeeping fees are also eliminated, which usually make holding the ADRs less expensive. Through the 8:1 split of the Roche ADR to its Swiss non-voting equity security, the price per ADR share is also lower and makes investing in Roche more accessible to individual investors.

OTCQX International Premier Market and ADR Liquidity

The OTCQX International Premier provides global companies already listed on international exchanges access to U.S. investors, and allows them to distribute information in the U.S. public markets without the duplicative complexity of a U.S. exchange listing. ADR liquidity is generally equivalent to that of the underlying securities traded in the issuer’s home market.

Companies on OTCQX use their home country disclosure in English in lieu of U.S. Securities and Exchange Commission (SEC) reporting. This helps ensure that only companies already approved by a qualified international stock exchange's listing process are eligible, and that they meet the highest international financial standards.

ADRs on the OTCQX International Premier, including the Roche ADR (stock symbol: RHHBY), can be traded in real time through any U.S. registered brokerage, just like the shares of any U.S.-based company. Real-time ADR trading data is also available in the public domain through various financial portals. Many well-known non-U.S. multinational companies currently trade on the OTCQX International Premier.

For more information on the OCTQX International Premier, please visit: https://www.otciq.com/otciq/otcqx-international. And for a list of companies with ADR programs, please visit: www.adr.com.


Share Information

Reasons to Invest

120+
Years of combined expertise in biotech, pharma, and diagnostics
75
New molecule entities in the pipeline
30
Years in a row of increased dividends