Pharmabiz
 

Novartis net earnings dips by 57% to $1,054 million

Our Bureau, MumbaiFriday, February 26, 2016, 16:45 Hrs  [IST]

Novartis International AG has posted poor financial performance during the fourth quarter ended December 2015 due to exceptional gain in 2014 and exceptional charges related to Venezuela subsidiaries in 2015. Its net profit declined by 57 per cent to $1,054 million from $2,448 million in the corresponding period of last year. Its net sales also declined by 4.2 per cent to $12,520 million from $13,075 million. EPS declined to $1.14 from $1.19 in the last period. As all transactions from the portfolio transformation were closed by the end of July 2015, the fourth quarter does not include any sales from vaccines, animal health or OTC.

Joseph Jimenez, CEO said, “In 2015, we completed our portfolio transformation, delivered solid financial results and improved core margin despite a very strong currency impact. With the plan we announced today, we intend to return the Alcon business to growth and strengthen our leading competitive position. Across the Group w will further focus our divisions, create even greater innovation by integrating drug development, and lower our costs by centralizing our manufacturing across divisions. This will position the company well for the future.”

The net sales for the full year ended December 2015 declined by 5.4 per cent to $49.4 billion from $52.2 billion in the previous year. Its net profit declined by 34.5 per cent to $7.0 billion from $10.7 billion. EPS declined to $2.92 from $4.39 in the last period. Its R&D expenditure was at $8.9 billion as compared to $9.1 billion in the previous year.

Its pharmaceutical sales declined by 4 per cent to $30.4 billion which includes new oncology assets acquired from GSK as against $31.8 billion in the previous year. The stiff competition from generic put pressure on sales. The sales of Gleevec declined by 2 per cent to $4.6 billion from $4.7 billion. Similarly, sales of Lucentis declined sharply by 16 per cent to $2.1 billion from $2.4 billion. However, sales of Gilenya increased by 12 per cent to $2.8 billion from $2.5 billion and that of Tasigna moved up by 7 per cent to $1.6 billion from $1.5 billion. The sales of Sandostatin and afinitor/votubia remained stagnant at $1.6 billion each. Alcon division sales declined by 9 per cent to $9.8 billion from $10.8 billion. The sales of Sandoz division declined by 4 per cent to $9.2 billion.

 
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