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Novartis continued its growth path in the second quarter of 2023. Net sales rose 7 percent to $13.6 billion between April and June. At constant exchange rates (cc), it rose 9 percent, Novartis said on Tuesday.
Sales in the more important pharmaceutical division, Innovative Medicines, rose to CHF 11.2 billion (+7%). Novartis said the growth was primarily driven by the development of the heart drug Entresto, the cancer treatments Pluvicto and Kisqali, and the MS drug Kespta. Meanwhile, the eye drug Gilenya has faced competition from generics whose sales have fallen more than 50 percent.
Sandoz spin-off on the way
The generics division, which Novartis plans to dedicate at the beginning of the fourth quarter, exceeded 2.4 billion (+5%) in the second quarter. The division grew strongly once again, especially in Europe. The Novartis Board of Directors unanimously approved the proposed 100% split.
The next step is for the shareholders. They will decide on the separation and the consequent reduction in the capital of Novartis AG at the extraordinary general meeting to be held on September 15th. If all goes as planned, Sandoz shares will be traded on the SIX Swiss Exchange at the beginning of the fourth quarter of 2023.
Snow increased significantly
Operating profit rose 31 percent to $2.9 billion. As a result, consolidated profit was 2.3 billion, 37 percent higher. Novartis justifies this with, among other things, lower restructuring costs. Core, the focus of investors and analysts and adjusted for various influences, rose 9 percent in the second quarter. Overall, quarterly results were above the AWP consensus of analyst estimates.
For the full year, Novartis management is once again raising previous targets for the entire Group. In terms of sales, Novartis is targeting sales growth in the high single-digit percentage range. Previously, the forecast was an increase in the mid-single-digit percentage range. Core operating result is expected to increase in the low double-digit percentage range, previously speaking of growth in the high single-digit percentage range.
In addition, management is announcing another share buyback program. The company’s strong balance sheet allows it to repurchase up to $15 billion in stock while maintaining the flexibility to make more targeted strategic acquisitions. (SDA/kae)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
