Novartis earnings slip 4% on robust greenback, Gilenya competitors By Reuters

By Ludwig Burger

(Reuters) -Quarterly working revenue at Swiss drugmaker Novartis slipped as competitors weighed on prescriptions of a number of sclerosis drug Gilenya, however the earnings outlook at generic-drugs unit Sandoz perked up once more.

For Novartis, which stories ends in {dollars}, a robust U.S. forex was additionally a drag on the worth of gross sales generated exterior the US.

Third-quarter group core working revenue declined 4% to $4.28 billion, barely beneath the common analyst consensus of $4.30 billion.

Quarterly gross sales slipped 4% to $12.54 billion, falling in need of the market view for $12.9 billion

Novartis mentioned it nonetheless anticipated gross sales and core working revenue to develop at a “mid single digit” share, when excluding forex swings, but it surely once more lifted its earnings steering for generic-drugs unit Sandoz, which will probably be spun off subsequent 12 months.

Pushed by gross sales of cheaper variations of biotechnology medicine that misplaced patent safety, the division’s core working revenue is now anticipated to develop by a “low single digit” share. The earlier outlook was for earnings on the unit to be broadly flat.

The U.S. Supreme Court docket final week turned down Novartis’ bid to dam the launch of generic variations of the corporate’s blockbuster a number of sclerosis drug Gilenya, which generated $2.8 billion in gross sales final 12 months.

Quarterly Gilenya gross sales fell a currency-adjusted 24% to $507 million, beneath a consensus of $555 million.