ZURICH--Novartis AG on Thursday reported a huge rise in
first-quarter earnings as the completion of a major transaction
delivered exceptional gains.
Basel-based Novartis said net profit attributable to
shareholders leapt to $13 billion from $2.94 billion a year earlier
as the company closed deals with GlaxoSmithKline and Eli Lilly and
Co.
The company said the sales resulted in an exceptional operating
income gain of $12.8 billion and a net income gain of $10.8
billion.
Net income from continuing businesses, which reflects the
company's actual businesses, fell to $2.31 billion from $2.45
billion a year earlier.
The pharmaceutical giant reported sales dropped 7% to $11.94
billion from $12.77 billion a year earlier based on operations the
company still owned. Analysts had forecast $12.61 billion.
The performance comes shortly after Novartis completed a series
of transactions valued at more than $25 billion that refocused the
drug group on three core areas: pharmaceuticals, generics and eye
care. The sweeping overhaul, which included the purchase of
GlaxoSmithKline's oncology unit, has transformed Novartis into a
cancer powerhouse with roughly a fifth of its revenue expected to
come from cancer drugs.
The overhaul has also opened up new opportunities for Novartis
to cut costs by consolidating support functions that had previously
been spread throughout the company.
Write to Andrew Morse at andrew.morse@wsj.com
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