(Updating with more divisional details, key drugs, main markets, CEO comments)

BASEL (Thomson Financial) - Roche Holding AG said sales for the first nine months of the year rose 12 pct to 33.9 bln sfr, reaching the lower-end of the forecast range, with continuing strength in pharma more or less managing to offset weaker Tamiflu orders.

During the year earlier period, Roche had reported a sales growth at group level of 19 pct boosted by strong sales of the flu treatment.

Sales of the drug, which is the World Health Organization's 'primary recommended antiviral of choice' in managing patients infected with the H5N1 bird flu virus, were boosted by government stockpiling last year.

Group sales for the nine-month period had been forecasted to reach 33.968-34.630 bln sfr, or an average of 34.217 bln.

The Basel-based drug-maker also confirmed its full year guidance, saying it still expects both the group and the pharmaceutical division's sales to grow at double-digit rates in local currencies.

Furthermore, both its pharma and diagnostics divisions expect above-market growth and target is for core EPS to grow faster than group sales.

During the first nine months, pharma sales reached 13 pct in Swiss franc-terms, more than twice the global market growth rate, and 14 pct in local currencies.

Commenting on the group's sales figures, outgoing CEO Franz Humer said that with stockpiling orders for Tamiflu filled, he was 'all the more pleased to report that our pharmaceuticals division continued its double-digit growth'.

Third quarter pharma sales, excluding Tamiflu, reached 12 pct, continuing its double-digit trend for recent years, with all of the drug maker's cancer medications posting double-digit growth rates.

Sales advanced well ahead of the market in both North America (16 pct) and Europe (12 pct) and the return to above market growth in Japan (7 pct) was maintained.

Roche said it had 'positive market response' following the EU launch of Avastin in advanced lung cancer, while the early uptake for Mircea -- which had recently been launched in the EU for anaemia -- is 'encouraging'.

Sales of MabThera/Rituxan for non-Hodgkin's lymphoma (NHL) continue to grow strongly, advancing 17 pct globally and 23 pct in Europe/Rest of the World, Roche said.

Global sales of Herceptin, the only targeted therapy with survival benefits in both early and advanced HER2-positive breast cancer, also continued their strong growth driven in particular by Europe.

Avastin sales increased by 41 pct worldwide compared to last year.

Roche also said that it has initiated studies with Avastin in important additional indications, such as adjuvant non-small cell lung cancer, gastric cancer and aggressive non-Hodgkin's lymphoma.

Sales of Roche's second major division, diagnostics, increased during the nine months period by 6 pct in Swiss francs and 5 pct in local currencies.

All regions contributed to higher sales, with strong growth coming from Asia-Pacific (18 pct), and solid growth in professional diagnostics and applied science of 7 pct and 10 pct, respectively.

Sales at Japanese unit Chugai Pharmaceutical Co increased 7 pct year-on-year and advanced 24 pct at Genentech Inc, in which Roche is a major shareholder. andrew.ge.thompson@thomson.com at/jfr/at/ejb COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.