July 21 – Novartis’ (NOVN.S), second-quarter core operating profit beat market expectations on Tuesday, helped by strong sales of cancer and multiple sclerosis drugs, though generic competition for its top-selling heart drug Entresto is mounting.
The Swiss drugmaker saw quarterly group operating income, adjusted for special items, come in at $5.94 billion dollars, above average analyst expectations of about $5.31 billion cited by Visible Alpha.
Novartis, with a market capitalization of $315 billion, is navigating its most severe period of patent expiries, most notably for the company’s top-selling heart failure drug Entresto, which made up 14% of total net sales last year.
Sales of Entresto declined by 50% in the second quarter, hurt by generic competition in its largest market, the United States, and came in at $1.18 billion, slightly below analysts’ expectations of $1.23 billion.
The drug will lose patent exclusivity in Europe starting from November, and Novartis expects the drop-off in sales will be less steep in the latter half of the year. Entresto sales declined 42% in the first quarter. Novartis is leaning on cancer drugs Kisqali and Scemblix, which grew 44% and 89%, respectively, in the quarter, and its recent string of dealmaking to offset patent expiries.
Reporting by Marleen Kaesebier and Bhanvi Satija, Editing by Miranda Murray.
