By Denise Rowland

Novartis AG (NOVN.EB) reported a fall in second-quarter core net income, as it plowed investment into the launch of new drugs that it hopes will offset the decline of its best-selling cancer drug Gleevec.

The Basel, Switzerland-based firm said Tuesday that core net income, a measure that excludes certain one-time gains and impairments, declined to $2.87 billion from $2.93 billion, while sales fell 2% to $12.24 billion. Analysts had expected Novartis to post core net income of $1.83 billion and revenue of $12.26 billion.

Novartis's aging blockbuster drug Gleevec lost patent protection last year, allowing cheaper imitations to enter the market and erode sales. It is counting on two new drugs, Entresto for heart failure and Cosentyx for psoriasis and other inflammatory conditions, to fill the hole left by the decline of Gleevec, which at its peak generated nearly $5 billion a year.

Core operating income fell 3% to $3.24 billion in the quarter, versus analyst estimates of $3.12 billion. Net income, including one-time gains, rose to $2.0 billion from $1.81 billion.

Write to Denise Rowland at denise.roland@wsj.com

(END) Dow Jones Newswires

July 18, 2017 01:44 ET (05:44 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
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