ZURICH (Reuters) – Roche Holding AG yesterday set out plans to slash costs, joining Big Pharma rivals with a wide-ranging restructuring programme as it grapples with recent product setbacks and mounting pressure on prices.

The Swiss drugmaker said it would hack 2.4 billion Swiss francs ($2.4 billion) from annual costs from 2012 onwards, with 1.8 billion francs of savings expected next year.

"The disclosed savings target of 2.4 billion francs per year from 2012 onwards is a positive surprise. The great majority of market participants expected Roche to announce savings of 2 billion francs," said DZ Bank analyst Thomas Maul.

The group's share was trading 1.6 percent higher at 0911 GMT, outperforming a 0.95 percent gain in the European healthcare index.

"Roche pessimists had not even expected the company to achieve 2 billion francs in savings. We might see double-digit upside revisions of earnings estimates (and) a clear improvement of sentiment," Maul said.