Novartis delivered solid performance in the second quarter, with strong innovation and progress on new launches
Basel, July 21, 2015 - Commenting on the results, Joseph Jimenez, CEO of Novartis, said: "Novartis had a strong quarter for innovation, with US approval and launch of both Entresto and Glatopa being key highlights. Additionally, we reported a broad range of positive clinical data across franchises, including Tafinlar/Mekinist in metastatic melanoma and Cosentyx in ankylosing spondylitis. We are confident we will deliver on our priorities for the year, and confirm our full-year guidance."
- Sales, core operating income and core EPS grew (cc) for continuing operations in Q2:
- Net sales amounted to USD 12.7 billion (-5%, +6% cc)
- Operating income was USD 2.3 billion (-28%, -14% cc)
- Core operating income was USD 3.6 billion (-7%, +6% cc)
- Q2 core margin improved 0.3 percentage points (cc)
- Core EPS was USD 1.27 (-7%, +7% cc), and free cash flow was USD 2.1 billion
- Further strengthening of USD impacted sales by -11% and core operating income by -13%
- Strong performance for Sandoz (net sales +11% cc, core operating income +30% cc) and Pharmaceuticals (net sales +6% cc, core operating income +9% cc), more than offset weak quarter for Alcon (net sales 0% cc, core operating income -10% cc)
- Strong innovation momentum continued in Q2, culminating in key launches
- Entresto approved and launched in US (July) for chronic heart failure with reduced ejection fraction
- Glatopa, the first generic competitor to Copaxone® 20mg, approved and launched in US
- Approvals for Zykadia (EU) and Promacta (US), and positive CHMP opinion for Farydak
- Positive data including Tafinlar/Mekinist combination in metastatic melanoma, Afinitor in GI and lung NET and Cosentyx in ankylosing spondylitis
- Growth Products continued to drive Q2 performance and rejuvenate portfolio
- Growth Products grew 24% (USD) to USD 4.4 billion, or 35% of net sales
- Strong performance in Emerging Growth Markets (+8% cc)
- Outlook 2015 for continuing operations confirmed:
- Continuing operations net sales expected to grow mid-single digit (cc); core operating income expected to grow ahead of sales at a high-single digit rate (cc)
- To reflect first half performance, Novartis raises Sandoz FY guidance to high single digit sales growth (cc), lowers Alcon FY guidance to low single digit sales growth (cc)
 Constant currencies (cc), core results and free cash flow are non-IFRS measures. An explanation of non-IFRS measures can be found on page 52 of the Condensed Interim Financial Report. Unless otherwise noted, all growth rates in this Release refer to same period in prior year.
 Continuing operations are defined on page 42 of the Condensed Interim Financial Report.
 Growth Products are defined on page 2 and Emerging Growth Markets on page 6.