Novartis International AG has received setback due to patent expiry, competition to Diovan in the US and exchange rates. Its net profit declined to $3,260 million from $3,539 million in the similar period of last year. Its net sales also declined by 7 per cent to$13,807 million from $14,843 million. EPS worked out to $1.01 as against $1.02 in the last period.

Its pharmaceuticals sales declined to $7,783 million from $8,159 million due to the impact of competition from generics. Products launched since 2007 generated $2.8 billion of net sales, 36 per cent of total sales. On September 21, 2012, Diovan lost exclusivity in the US and in line with normal practice, the product returns provision was increased to reflect limited expectations of future sales. Diovan HCT is facing competition from a single generic competitor holding 180-day exclusivity and from Sandoz with an authorized generic.

Commenting on the results, Joseph Jimenez, CEO, said, “While Novartis net sales were impacted by the patent expiration of Diovan and a down quarter in Sandoz and consumer health, our launch brands performed well and now represent 29 per cent of group sales. Pharmaceuticals had another solid quarter.”

Alcon net sales also declined to $2,460 million from $2,492 million in the same quarter of last year. The surgical franchise delivered modest sales growth in constant currencies. Ophthalmic pharmaceuticals sales growth was suppressed by generic prostaglandin competition on Travatan in the US and lower sales of non-promoted brands. Vision Care benefited from robust contact lens sales growth in the US and Japan.

The sales of Sandoz division declined by 13 per cent to $ 2,044 million from $2,340 million Fougera, the recently acquired dermatology business, contributed 2 percentage points of growth from the inclusion of approximately one month of sales. Vaccines and diagnostics net sales went down by 11 per cent to $582 million. The sales decline was driven by lower northern hemisphere flu sales and shipment delays from one of its manufacturing sites. The sales of consumer healthcare, including OTC and animal health, declined by 22 per cent to $938 million.