Generic medicines hit Novartis profits

Swiss drugmaker Novartis on Tuesday posted a drop in first half profits amid fierce competition for generic medicines and pricing pressures but said it was set to reach annual targets.

January-June net core income dropped 5 percent to $3.6 billion (3.1 billion euros), as overall first half sales dipped one percent to $23.7 billion, despite a six percent rise in volume, the group said.

Those volumes were buoyed by two medicines deemed to have strong potential—heart Entresto and Cosentyx, a treatment for psoriasis.

Stiff competition for generic —not least copy cat drugs for its blockbuster cancer drug Gleevec—has eaten away some 3 percent of current profit margins, while price pressures have accounted for another 2 percent.

For the outlook for the year as a whole Novartis reconfirmed its objectives in saying it expected global sales this year to hit similar levels to 2016.

In January, the group announced total sales of $48.5 billion for 2016.


Explore further

Novartis profit slips as key drug goes generic

© 2017 AFP

Citation: Generic medicines hit Novartis profits (2017, July 18) retrieved 19 June 2019 from https://medicalxpress.com/news/2017-07-medicines-novartis-profits.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
0 shares

Feedback to editors

User comments

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