Swiss pharma Novartis ups full-year sales outlook (Update)

October 22, 2013 by John Heilprin
In this Jan. 11, 2011 file picture the headquarter of Swiss pharmaceutical company Novartis is photographed in Basel. Switzerland. Swiss pharmaceutical giant Novartis AG has posted a 6 percent drop in net profit in the third quarter, citing negative currency trends and other factors. The Basel, Switzerland-based company reported Tuesday Oct. 22, 2013 a net profit of US $2.26 billion in the July-September quarter, down from last year's equivalent of $2.42 billion, which was downwardly adjusted to conform to new reporting requirements. (AP Photo/Keystone,Gaetan Bally,File)

Swiss pharmaceutical giant Novartis AG raised its full-year sales outlook because of delays in generic competition to its blockbuster blood pressure drug Diovan, even though it said negative currency trends contributed to a 6 percent drop in its third-quarter net profit.

The Basel, Switzerland-based company said Tuesday that it made a net profit of $2.26 billion in the July-September quarter, down from last year's equivalent of $2.42 billion, which was downwardly adjusted to conform to new reporting requirements.

Novartis said a weaker yen and falls in emerging market currencies, along with expiring patents and royalty payments, affected its financial performance.

Even so, third-quarter sales rose 4 percent to $14.3 billion and the company's share price shot up almost 2 percent to close at 69.25 Swiss francs in Thursday trading in Zurich.

Chief Executive Joseph Jimenez told reporters that sales among "all divisions performed well in the third quarter," and the company was contending with the loss of patent rights on Diovan, which expired in the United States last year. U.S. regulators have yet to approve the generic version from competitor Ranbaxy Laboratories, a delay that has helped the company.

"So we have competition on one of the two types of Diovan in the U.S., but not on the second," Jimenez said. "Even when you take that out, the pharma business grew nicely."

Because of that delay and what it called "strong growth products momentum" from new drugs in its pipeline, Novartis said it now expects group sales in 2013 to rise in the low- to mid-single digit range, if currencies stay unchanged.

"The strength of our pipeline positions us for very strong growth going forward," Jimenez said.

The company said it expects generic competition to cut into its sales by $2.3 billion in 2013, which is more than $1 billion less than the level it expected at the start of the year, "mostly due to the continued absence of generic competition for Diovan monotherapy in the U.S."

Explore further: Novartis Q4 net profit rebounds to $2.1 billion

Related Stories

Novartis Q4 net profit rebounds to $2.1 billion

January 23, 2013
(AP)—Swiss drug maker Novartis AG reported a jump in fourth-quarter net profit to $2.08 billion on Wednesday, citing the lack of a $900-million one-time charge it took in the same period the previous year.

Novartis lifts sales outlook despite Q2 profit dip

July 17, 2013
(AP)—Swiss pharmaceutical company Novartis AG raised its sales outlook for the full year on Wednesday, despite posting a 5 percent net income drop in the second quarter.

New drugs shore up Novartis in Q2

July 19, 2012
(AP) — Swiss pharmaceutical company Novartis AG reported a net profit of $2.73 billion during the second quarter, as new drugs and acquisitions offset patent expirations, lower sales of generic medicines and the strengthening ...

Novartis announces 2,000 job losses, profits up

October 25, 2011
Swiss pharmaceutical giant Novartis announced 2,000 job losses Tuesday, mostly in Switzerland and the United States, while reporting net profits of $3.53 billion (2.5 billion euros) for the third quarter.

Recommended for you

Best of Last Year—The top Medical Xpress articles of 2017

December 20, 2017
It was a good year for medical research as a team at the German center for Neurodegenerative Diseases, Magdeburg, found that dancing can reverse the signs of aging in the brain. Any exercise helps, the team found, but dancing ...

Pickled in 'cognac', Chopin's heart gives up its secrets

November 26, 2017
The heart of Frederic Chopin, among the world's most cherished musical virtuosos, may finally have given up the cause of his untimely death.

Sugar industry withheld evidence of sucrose's health effects nearly 50 years ago

November 21, 2017
A U.S. sugar industry trade group appears to have pulled the plug on a study that was producing animal evidence linking sucrose to disease nearly 50 years ago, researchers argue in a paper publishing on November 21 in the ...

Female researchers pay more attention to sex and gender in medicine

November 7, 2017
When women participate in a medical research paper, that research is more likely to take into account the differences between the way men and women react to diseases and treatments, according to a new study by Stanford researchers.

Drug therapy from lethal bacteria could reduce kidney transplant rejection

August 3, 2017
An experimental treatment derived from a potentially deadly microorganism may provide lifesaving help for kidney transplant patients, according to an international study led by investigators at Cedars-Sinai.

Exploring the potential of human echolocation

June 25, 2017
People who are visually impaired will often use a cane to feel out their surroundings. With training and practice, people can learn to use the pitch, loudness and timbre of echoes from the cane or other sounds to navigate ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.