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.
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%.