Novartis 3Q Earnings, Sales Grow; Announces Strategic Review of Generics Division -- Update
October 26 2021 - 2:57AM
Dow Jones News
By Cecilia Butini
Novartis AG said Tuesday that earnings and sales grew on-year in
the third quarter and announced a strategic review of its generics
division Sandoz, which could include separation of the
business.
The Swiss pharma major posted net profit of $2.76 billion for
the quarter, up from $1.93 billion the year prior, on sales which
grew to $13.03 billion from $12.26 billion in the third quarter of
2020.
Operating profit was $3.23 billion, compared with $2.41 the
previous year, and earnings per share came in at $1.23, versus
$0.85 the previous year. Core operating income grew to $4.47
billion in the quarter from $4.07 billion the previous year.
Key growth drivers in the quarter were again heart-failure drug
Entresto, psoriasis and arthritis treatment Cosentyx and Kesimpta,
a treatment for relapsing multiple sclerosis. Novartis increased
its 2021 peak sales guidance for Cosentyx and Entresto to at least
$7 billion and at least $5 billion, respectively.
Regarding its generics division Sandoz, the company said that it
has commenced a strategic review that will explore all options,
ranging from retaining the business to separation.
The company had previously said that it would seek to streamline
the division after a failed deal with Aurobindo Pharma, and that it
would focus more on biosimilars and on strengthening its existing
pipeline. Chief Executive Vas Narasimhan said during a conference
call that the company would provide updates on the division by the
end of next year.
Looking at the rest of 2021, Novartis backed a previously given
guidance, saying that it expects sales to grow by low- to
mid-single digit and core operating income to grow by mid-single
digit.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
October 26, 2021 02:42 ET (06:42 GMT)
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