Novartis 3Q Net Profit Rises as New Drugs Offset Generic Competition
24 October 2017 - 5:05PM
Dow Jones News
By Sonia Amaral Rohter
Novartis AG (NOVN.EB) said on Tuesday that its third-quarter net
profit increased as growth from two recently launched drugs,
Cosentyx and Entresto, helped offset the negative impact of generic
competition.
The Swiss pharmaceuticals company reported third-quarter net
profit of $2.08 billion compared with $1.95 billion during the same
period a year ago. Revenue for the quarter increased 2.4% to $12.41
billion, Novartis said.
Analysts surveyed by FactSet had expected net income for the
quarter of $2.02 billion and sales of $12.34 billion.
Sales at Alcon, Novartis's eyecare unit, increased 6% to $1.5
billion, it said.
Novartis, which had announced a strategic review of Alcon in
January, said that it has made progress in its evaluation of the
possibilities for Alcon, and that the review shows that creating a
"stand-alone company via a capital markets exit" could create
additional value.
The company says a final decision will depend on continued Alcon
sales growth and margin improvement over multiple quarters. It says
that action is not likely before the first half of 2019.
The company confirmed its 2017 outlook and said that net sales
are expected to be in line with the prior year on a
constant-currency basis and core operating income is expected to be
in line or show low single-digit decline.
Write to Sonia Amaral Rohter at
sonia.amaralrohter@dowjones.com
(END) Dow Jones Newswires
October 24, 2017 01:50 ET (05:50 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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