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7/18, 7:29 AM (Source: TeleTrader)
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Novartis reports 12.5% drop in profit to $6.8B

Novartis SA said its earnings came in 12% lower on an annual scale for the second quarter, at $2.94 per share, on a drop in total net income of 12.5% to $6.8 billion. Negative contribution of currency changes was two percentage points each, according to data published on Thursday. Net sales were increased by 3.7% to $11.8 billion, or four points more without forex impact. Of note, profit from discontinued operations was $4.69 billion.

Chief executive Vas Narasimhan pointed to double-digit core operating income growth with margin expansion and attributed it to strong sales and productivity. "We continue to progress our breakthrough medicines pipeline, with the launches of Zolgensma and Piqray, and are on track for the upcoming pivotal trial results of Entresto in preserved ejection fraction heart failure, ofatumumab in multiple sclerosis, and fevipiprant in asthma," he stated.

The Swiss pharmaceutical giant revealed core earnings grew by 2.9% to $3.1 billion or 3.9% to $1.34 per share. It revised net sales growth excluding certain items upward to mid- to high-single digit in constant currency. Core operating income growth outlook was also strengthened to low double-digit to mid-teens in the same terms.

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