By Sam Cage

confirmed its commitment to a $43.7 billion bid for the rest of Genentech Inc and reported a 2 percent fall in nine-month sales to 33.3 billion Swiss francs ($29.26 billion).

The world's largest maker of cancer drugs, which had its offer to buy out U.S. biotech partner Genentech rebuffed, reported nine-month sales just behind forecasts on Tuesday due to the loss of pandemic Tamiflu sales, and confirmed its full-year outlook. Roche currently owns 56 percent of Genentech.

"I would like to reaffirm that we remain committed to the deal and we aim for a negotiated settlement," Roche Chief Executive Severin Schwan told reporters.

"At this point we would not give any details or further information on how we arrange the financing and where exactly we stand in the negotiating process," Schwan said

Roche stock fell 1.1 percent to 178.40 Swiss francs by 0710 GMT, behind a 1.1 percent rise in the European pharmaceuticals sector.

"The business appears on track to meet full-year guidance with no major surprises," said Citi analyst Amit Roy.

Roche, like other big drugmakers, has been shielded to some extent from the global financial crisis thanks to its relatively secure earnings and dividends. The impact of market turmoil on its financial income has been "immaterial," Schwan said.

The company flexed its financial muscles with the Genentech bid in July, holding firm to its $89 per share offer for the 44 percent it does not already own, even though it was rejected as undervaluing the U.S. biotech company. Genentech shares close on Monday at $84.26.

Buying Genentech would give Roche control of all revenues for big-selling cancer drugs Avastin and Herceptin, as well as absorbing an attractive portfolio of new medicines.

FLAGGING TAMIFLU

But Roche's own results have been hit in 2008 by the previously flagged loss of sales of antiviral drug Tamiflu for stockpiling against the event of an influenza pandemic, as governments and others have already built up large reserves.

Total sales of Tamiflu fell 69 percent to 428 million francs in the first nine months.

Excluding the effect of pandemic Tamiflu revenue, group sales rose 2 percent to 33.2 billion francs, also hurt by the strength of the Swiss currency.

Sales at the pharmaceuticals unit, excluding pandemic Tamiflu, rose 1 percent to 26.1 billion francs.

Roche trades at nearly 14 times forecast 2009 earnings, a premium to other large-cap pharma groups like GlaxoSmithKline Plc, Sanofi-Aventis SA and local Swiss rival Novartis AG because of its limited competitive exposure and strength in cancer drugs.

It had been expected to post nine-month sales of 33.4 billion francs, according to a Reuters poll of 16 analysts.

(Editing by Quentin Bryar)