Reports today show that Novartis said its profit climbed from $1.98 billion to $2.93 billion, as sales climbed 25% to $12.13 billion. Its “core” per-share profit of $1.45 was well ahead of analyst estimates of $1.26.
Novartis counted on Diovan, Lucentis, and Gleevec to keep money flowing in. Lucentis saw sales surge 59% to $364 million. Cancer-drug sales climbed 20% to $2.4 billion, with $1.03 billion of sales coming from leukemia drug Gleevec. Diovan sales edged up 3% to $1.44 billion strongly due to the fact that Teva won the right to sell generic version of Merck’s Cozaar (Diovan’s competitor).
According to Marketwatch.com,
It’s still pursuing the buyout of the shares it doesn’t already hold in Alcon. Novartis said it’s on track to get 77% of the company as a sale of a stake from Nestle closes. Minority shareholders of Alcon have rejected an offer from Novartis that was substantially less per share than what the Swiss drug maker was willing to pay Nestle.
Novartis said it’s still targeting mid-single-digit sales growth at constant currencies.
Unlike rival Eli Lilly, Novartis didn’t cut guidance due to the recently passed U.S. health-care legislation.
“The greater diversity and lower U.S. exposure in Novartis versus its peers serves it well in this regard,” said Jeffrey Holford, an analyst at Jefferies.
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