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Novartis Says Buoyed by New Treatments in Second Quarter
Lower costs and growth in cancer drugs helped offset a 50% drop in Entresto sales, while quarterly operating income topped estimates.
- On Tuesday, Novartis reported second-quarter core operating income of $5.94 billion, beating analyst expectations of about $5.31 billion as lower costs offset a sharp sales decline in Entresto.
- Sales of Entresto fell 50% to $1.18 billion during the quarter, missing analyst expectations of $1.23 billion due to generic competition in the US market.
- Novartis offset patent expiries by leaning on cancer drugs Kisqali and Scemblix, which grew 44% and 89% respectively, while Psiorarisis drug Cosentyx beat expectations with 12% growth.
- Chief executive Vas Narasimhan said, "We are on track for multiple important readouts ahead in the second half," while Barclays analysts wrote it is "all eyes on pipeline."
- While Novartis expects sales to decline by $4 billion this year due to generic competition, the Swiss drugmaker maintains a premium valuation of 16 times forward earnings ahead of AstraZeneca, Roche, and GSK.
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25 Articles
25 Articles
Novartis is already on a growth course again despite high losses in the no longer patent-protected heart remedy Entresto. On the stock exchange, the Group is expected to become more restless in the second semester.
·Zürich, Switzerland
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Novartis' sales grew again from sales in the second quarter, surpassing market projections and relieving recent pressures on its results caused by the loss of patents for important drugs in the United States. Exclusive to subscribers. To have full access, access the link of the material and register.
·Rio de Janeiro, Brazil
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Coverage Details
Total News Sources25
Leaning Left0Leaning Right5Center6Last UpdatedBias Distribution55% Center
Bias Distribution
- 55% of the sources are Center
55% Center
C 55%
R 45%
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