Novartis Q3 net income increased 7 percentStaff Writer | October 25, 2016
Novartis reported higher net profit in its third quarter, while sales were weak due to generic competition and pricing.
Novartis Earnings per share were $0.81
For the third quarter, net income increased 7 percent to $1.95 billion from last year's $1.82 billion. Earnings per share were $0.81, a growth of 8 percent from $0.75 a year ago.
Core net income was $2.94 billion or $1.23 per share, compared to $3.06 billion or $1.27 per share in the prior year.
Third-quarter operating income was $2.3 billion, an increase of 2 percent. Core operating income was $3.4 billion, down 3 percent from last year, reflecting generic erosion and growth investments. Core operating income margin declined 0.6 percentage points at constant rates.
Net sales were $12.126 billion, slightly lower than prior year's $12.265 billion. Analysts expected sales of $12.24 billion for the period.
Sales were down 1 percent at constant currency, as volume growth of 5 percentage points was more than offset by the negative impact of generic competition and pricing.
Generic competition had a negative impact of 5 percentage points and pricing had a negative impact of 1 percentage point, both largely due to cancer drug Gleevec/Glivec genericization in the U.S.
Growth Products contributed $4.3 billion or 36 percent of net sales, up 20 percent over the prior-year quarter.
Innovative Medicines, formerly named the Pharmaceuticals Division, net sales were $8.2 billion, slightly lower than last year.
Gilenya sales grew 15 percent at constant rates. The company said Cosentyx is on track for blockbuster status in first full year after approval. Sandoz Biopharmaceuticals sales climbed 41 percent at constant rates. Alcon net sales were down 2 percent in the third quarter.
Net sales in Emerging Growth Markets grew 6 percent in the third quarter, led by China, Russia and India. ■