Homepage
PR Newswire
01-02-2023, 11:02 PM
Novartis says operating profit to grow again ahead of Sandoz spin off
* Swiss drugmaker predicted that core operating income would grow in a “mid single digit” percentage range in 2023 following stagnation last year.
* Chief Executive Vas Narasimhan told CNBC it would see tailwinds in 2023 from the stabilization of healthcare systems and China’s reopening.
* The company is also preparing to spin off its Sandoz generics business.
Reuters
PUBLISHED WED, FEB 1 20232:53 AM EST
Novartis on Wednesday predicted that core operating income would grow in a “mid single digit” percentage range in 2023 following stagnation last year, as the Swiss drugmaker prepares to spin off its Sandoz generics business.
Full-year core operating income was broadly flat at $16.7 billion, it said in a statement, coming in slightly below market expectations of $16.8 billion.
Adjusted for overall negative currency effects, group sales in 2022 advanced 4% to $50.5 billion as gains from heart failure drug Entresto and multiple sclerosis (MS) drug Kesimpta were partly offset by competition from cheap generic copies of established MS drug Gilenya.
Novartis Chief Executive Vas Narasimhan told CNBC’s Geoff Cutmore the company had faced challenges in the first half of 2022 including hyperinflation and the ongoing impact of the coronavirus pandemic.
“Now we’re seeing some of those things start to stabilize. We’re seeing health care systems stabilize a bit more, we’re seeing China start to stabilize, and we see a second-half rebound in China. All of those are important tailwinds for a business like ours,” he said during an interview in Basel, Switzerland.
Novartis said in its statement it’s on track to spin off its generics unit Sandoz in the second half of the year as part of its effort to sharpen its focus on its patented prescription medicines.
Analysts say the share price has been supported by a programme unveiled in 2022 to trim costs and cut 8,000 jobs and plans announced later last year to focus on fewer therapy areas and drug technologies.
But the market has been underwhelmed by its prospects for medium-term growth from new drugs. Shares are down about 11% since January 2020, underperforming most of its rivals.
The market has been pinning hopes for future sales growth on wider use of breast cancer drug Kisqali and iptacopan, which is being tested against a rare genetic blood disorder, possibly challenging AstraZeneca’s drugs Soliris and Ultomiris.
MS drug Kesimpta, requiring fewer injections than standard therapies, is expected to become Novartis’ second largest growth driver in 2023, after Entresto.
More details in https://www.cnbc.com/2023/02/01/novartis...n-off.html
* Swiss drugmaker predicted that core operating income would grow in a “mid single digit” percentage range in 2023 following stagnation last year.
* Chief Executive Vas Narasimhan told CNBC it would see tailwinds in 2023 from the stabilization of healthcare systems and China’s reopening.
* The company is also preparing to spin off its Sandoz generics business.
Reuters
PUBLISHED WED, FEB 1 20232:53 AM EST
Novartis on Wednesday predicted that core operating income would grow in a “mid single digit” percentage range in 2023 following stagnation last year, as the Swiss drugmaker prepares to spin off its Sandoz generics business.
Full-year core operating income was broadly flat at $16.7 billion, it said in a statement, coming in slightly below market expectations of $16.8 billion.
Adjusted for overall negative currency effects, group sales in 2022 advanced 4% to $50.5 billion as gains from heart failure drug Entresto and multiple sclerosis (MS) drug Kesimpta were partly offset by competition from cheap generic copies of established MS drug Gilenya.
Novartis Chief Executive Vas Narasimhan told CNBC’s Geoff Cutmore the company had faced challenges in the first half of 2022 including hyperinflation and the ongoing impact of the coronavirus pandemic.
“Now we’re seeing some of those things start to stabilize. We’re seeing health care systems stabilize a bit more, we’re seeing China start to stabilize, and we see a second-half rebound in China. All of those are important tailwinds for a business like ours,” he said during an interview in Basel, Switzerland.
Novartis said in its statement it’s on track to spin off its generics unit Sandoz in the second half of the year as part of its effort to sharpen its focus on its patented prescription medicines.
Analysts say the share price has been supported by a programme unveiled in 2022 to trim costs and cut 8,000 jobs and plans announced later last year to focus on fewer therapy areas and drug technologies.
But the market has been underwhelmed by its prospects for medium-term growth from new drugs. Shares are down about 11% since January 2020, underperforming most of its rivals.
The market has been pinning hopes for future sales growth on wider use of breast cancer drug Kisqali and iptacopan, which is being tested against a rare genetic blood disorder, possibly challenging AstraZeneca’s drugs Soliris and Ultomiris.
MS drug Kesimpta, requiring fewer injections than standard therapies, is expected to become Novartis’ second largest growth driver in 2023, after Entresto.
More details in https://www.cnbc.com/2023/02/01/novartis...n-off.html
Specuvestor: Asset - Business - Structure.