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Novartis delivers strong sales, double digit core operating income growth and launches Zolgensma and Piqray in second quarter; sales and profit guidance increased

  • Continuing operations[1] net sales up 8% (cc[2], +4% USD) driven by:
    • Cosentyx at USD 858 million, +25% (cc) mainly driven by continued strong US growth (+31%)
    • Entresto grew to USD 421 million, +81% (cc) with increased initiation in hospital and ambulatory settings
    • Oncology sales grew 9% (cc) driven by growth from Lutathera (USD 109 million), Kisqali (USD 111 million) and Kymriah (USD 58 million) in the second quarter
    • Sandoz sales grew 3% (cc, -1% USD) as ex-US growth more than offset the decline in US
  • Core[2] operating income grew 20% (cc, +14% USD) mainly driven by strong sales and productivity, increasing core operating income margin by 3.2 percentage points (cc) to 31.0% of net sales
  • Net income from continuing operations was USD 2.1 billion in Q2, declining compared to prior year, which included a USD 5.7 billion net gain from the sale of the OTC JV
  • Following the Alcon spin-off, a one-time non-cash IFRS gain of USD 4.7 billion was recorded in discontinued operations
  • Free cash flow[2] grew 11% to USD 3.6 billion, mainly driven by higher operating income and higher divestment proceeds, partly offset by OTC JV dividends received in prior year
  • Landmark innovation year continues with addition of new potential blockbusters:
    • Zolgensma gene therapy launched in US for treatment of SMA in children under the age of two, robust data presented at AAN demonstrating efficacy in broad spectrum of patients
    • Piqray (alpelisib) launched for treatment of advanced breast cancer with a PIK3CA mutation
    • SEG101 (crizanlizumab) for treatment of sickle cell disease filed in the EU and US with FDA priority review
  • Xiidra dry eye treatment acquired expanding our leading presence in ophthalmic pharmaceuticals
  • 2019 guidance increased for new focused medicines company[3] - Sales expected to grow mid to high-single digit (cc), core operating income expected to grow low double digit to mid-teens (cc), sales guidance increased for both divisions

Basel, July 18, 2019 - Commenting on the results, Vas Narasimhan, CEO of Novartis, said:
"Novartis delivered an exceptional first half performance in 2019 as a focused medicines company with strong sales and productivity driving double digit core operating income growth with margin expansion. We increased our full year guidance for both sales and core operating income in light of our strong momentum. We continue to progress our breakthrough medicines pipeline, with the launches of Zolgensma andPiqray, and are on track for the upcoming pivotal trial results of Entrestoin preserved ejection fraction heart failure, ofatumumab in multiple sclerosis, and fevipiprant in asthma."


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Last Updated: 30-Jul-2019