FiercePharma says: Novartis' profits grew by 19 percent to $2.42 billion, fueled by sales of its pandemic flu vaccine; growth at Sandoz, its generics division; and strong sales of the cancer drug Gleevec and newer products as the eye drug Lucentis. The company is so encouraged that it's hiking its expectations for the year, to "mid-to-high single-digit" sales growth from its previous forecast of "mid-single-digit" growth. The Swiss drugmaker also said it agreed to pay up to $175 million to settle a high-profile gender discrimination lawsuit.
Novartis Q2 Earnings Highlights
- Double-digit growth in the second quarter with excellent contributions from all divisions
- Net sales up 11% (+12% in constant currencies, or cc) to $11.7 billion; first half up 18% (+15% cc) to $23.8 billion.
- Operating income grows 25% (+24% cc) to $3 billion; core operating income up 23% (+23% cc) to $3.3 billion.
- Core margin improves by 2.7 percentage points to 28% of net sales.
- EPS up 18% (+17% cc) to $1.06; core EPS rises 14% (+14% cc) to $1.20.
- Free cash flow before dividends up 24% ($2.4 billion); first half free cash flow up 54% to $5.3 billion.
- Strong performance driven by continued portfolio rejuvenation and innovation
- Unanimous FDA Advisory Committee recommendation for FTY720 approval as therapy for multiple sclerosis.
- US approval of Tasigna as first-line therapy for chronic myeloid leukemia
- Group's recently launched products contribute 21% of net sales ($2.4 billion); $5.5 billion for first half.
- Oncology franchise showcased at ASCO with 170 abstracts highlighting investigational uses of current therapies and new agents.
Novartis' website: http://www.novartis.com/
Full release: Novartis earnings release