Correct: Novartis Second-Quarter Net Income $1.98 Billion, Beating Expectations
18 July 2017 - 05:02PM
Dow Jones News
(Analysts had expected Novartis to post net income of $1.83
billion and revenue of $12.26 billion. In addition, this version
removes references to core net income and fixes the reporter's
name. The net income was also rounded down. "Novartis
Second-Quarter Core Net Income $2.87 Billion, Beating
Expectations," at 0529 GMT, incorrectly said analysts had expected
Novartis to post core net income of $1.83 billion in the second
paragraph. The correct version follows: )
By Denise Roland
Novartis AG reported a slight rise in second quarter net income,
as proceeds from divestments helped offset its heavier investment
into the launch of new drugs that it hopes will compensate the
decline of its best-selling cancer drug Gleevec.
The Basel, Switzerland-based firm said Tuesday that net income
rose to $1.98 billion from $1.81 billion, while sales fell 2% to
$12.24 billion. Analysts had expected Novartis to post net income
of $1.83 billion and revenue of $12.26 billion.
The rise in net income was thanks largely to proceeds from
product divestments in the quarter that increased other income to
$480 million from $239 million the previous year.
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, a measure that excludes certain one-time
gains and impairments, fell 3% to $3.24 billion in the quarter,
versus analyst estimates of $3.12 billion.
Write to Denise Roland at denise.roland@wsj.com
(END) Dow Jones Newswires
July 18, 2017 02:47 ET (06:47 GMT)
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