- Novartis AG NVS has reported a core EPS of $1.56 in Q2 FY22 compared to $1.66 a year ago, beating the consensus of $1.52.
- Net sales were $12.78 billion, down 1% Y/Y or up 5% at constant currency (CC), missing the consensus of $13.01 billion.
- The increase was driven by volume growth of 12 percentage points, price erosion of 4 percentage points, and the negative impact of the generic competition of 3 percentage points.
- Q2 operating income of $2.23 billion declined by 30% at constant currency (down 36%) mainly due to prior year divestment gains, higher impairments, and higher restructuring costs.
- Net income of $1.69 billion declined 34% at CC or down 29%, excluding the impact of Roche Holding Ltd RHHBY income.
- Core net income reached $3.4 billion, down 1% at CC. Excluding the impact of Roche core income, core net income grew +8% CC.
- Core operating income was $4.27 billion, up 5% CC.
- Quarterly revenue from heart failure drug Entresto jumped 27% to $1.13 billion. Sales of psoriasis and arthritis drug Cosentyx gained 9% to $1.28 billion.
- The pharma giant is now targeting $1.5 billion in savings from its organizational restructuring, where it had previously seen savings of at least $1 billion by 2024.
- Novartis reiterates its FY22 guidance, with sales and core operating income to grow mid-single digit.
- For Sandoz, NVS expects sales to grow low single digit (prior view broadly in line) and core operating income to be broadly in line with the previous year (revised upwards from to decline low to mid-single digit).
- Price Action: NVS shares are up 2.99% at $85.17 during the premarket session on the last check Tuesday.
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