Novartis International AG has suffered a heavy setback during the second quarter ended June 2015 due to strengthening of US Dollar and its net profit declined by 28.9 per cent to US$ 1,838 million from $2,585 million in the corresponding period of last year. Its net sales declined by 4.9 per cent to $12,694 million from $13,247 million. Lower profit impacted its EPS which declined to $0.77 as against $1.11 in the last period. The company included the results from the new oncology assets acquired from GSK and the 36.5% interest in the GSK Consumer healthcare joint venture.
The company received approval for Entresto in US for chronic heart failure with reduced ejection fraction. Similarly, it received approval for Glatopa, the first generic competitor to Copaxone 20 mg, and it launched the same in US.
Joseph Jimenez, CEO, said, Novartis had a strong quarter for innovation, with US approval and launch of both Entresto and Glatopa being key highlights. Additionally, we reported a broad range of positive clinical data across franchises, including Tafinlar/Mekinist in metastatic melanoma and Cosentyx in ankylosing spondylitis. We are confident we will deliver on our priorities for the year, and confirm our full-year guidance.”
The company's net sales for the first half ended June 2015 declined by 6 per cent to $24,629 million from $26,114 million in the same period of last year. Its net profit also declined by 20 per cent to $4,162 million from $5,177 million. EPS worked out to $2.60 as against $2.71 in the last period. Its pharmaceutical sales declined by 6 per cent to $15 billion due to generic competition. The sales of Alcon also declined by 6 per cent to $5.1 billion. Similarly, Sandoz sales declined by 3per cent to $4.5 billion.
The growth product, an indicator of the rejuvenation of the portfolio, contributed 35 per cent of continuing operations net sales in the second quarter, and were up 24 per cent. In pharmaceuticals, growth products contributed 44 per cent of division net sales in the quarter. The company is focusing key products like Gilenya, Afinitor, Tasigna, Xolair, tafinlar/Mekinist and Jakavi. Its sales in Brazil increased by 16 per cent and that in China improved by 7 per cent during the quarter under review.