Excellent second quarter for Novartis

Switzerland-based Novartis today has announced its second-quarter results, which have positively impressed investors, to the extent that the company’s shares have increased by 2.74% (Zurich). Sales increased by 5%–7% at constant currencies–to $13.158bn and EBIT has increased by 9% to $3.5bn. Impressive results were delivered by the psoriasis drug Cosentyx, whose sales increased by 40%, and by Entresto, which yielded $239m, that is +119% vs Q2 2017. The Group CEO Vas Narasimhan has said in an interview to CNBC Europe  that he is highly satisfied with the Novartis’ first quarter results. Moreover, Narasimhan has stressed that the strategy that has led to sell the JV producing OTCs to GSK for $13bn, to spin off Alcon and to perform recent acquisitions in key sectors such as oncology (Advanced Accelerator) and gene therapies (Avexis) is proceeding according to plan and aims to place Novartis among the medicines companies, also thanks to new IT progress. The group’s debt has risen to $19.2bn and its cash flow to $5.5bn. The only negative is Sandoz, whose sales volume has not improved over Q2 2017, due to pressure on prices by the market, although the volume of sold drugs has increased by 7%.

(Sources: Novartis, CNBC)