Economy News

Novartis continued to recover in Q2

Sponsored

The pharmaceutical giant Novartis generated $12.96 billion in revenue between April and June. Management reports that demand has returned to pre-pandemic levels in most countries and therapeutic areas.

novartis

The company still expects sales growth between 1 and 5% for the year, excluding currency effects – Without currency effects, sales growth would be 14% or 9%.

Innovative Medicines contributed $10.6 billion (+15%), while Sandoz contributed USD 2.4 billion, up 11%. Sandoz’s generics and biosimilars again suffer from pricing pressure, but volumes are recovering from the pandemic’s peak.

Including any exceptional items, the core operating profit (Ebit) increased by 13% to $4.7 billion. The real Ebit increased by more than 40% to $3.77 billion, driven primarily by disposals and scale effects.

As a result of a reduction in expenses, the net profit jumped from less than 1.9 billion a year earlier to over 2.9 billion.

The recovery surge exceeded AWP consensus expectations of 11% growth excluding currency effects at 12.60 billion. The core EBIT was projected at $4.07 billion.

Novartis reported sales up 7% to 25.4 billion in the first six months of the year, boosted by sales of its heart treatment Entresto, anti-psoriatic and anti-arthritic Cosentyx, and gene therapy Zolgensma. The earnings are in the five billion range.

The company continues to target sales growth between 1 and 5% for the year, excluding currency effects, and core operating income of around 5% at Group level. Sandoz’s revenues are forecast to decline by 1-5% and its core EBIT to drop by 10-15%.

For MetaNews.

Avatar

Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

Related Posts