Novartis net up by 3% to $3,283 million in Q2

Novartis International AG has posted marginal growth in profits as well as sales during the second quarter ended June 2014 due to lower sales of Diovan in Japan and US. Its net profit moved up by 3 per cent to $3,283 million from $ 3,188 million in the similar period of last year. Its net sales improved marginally by 2 per cent to $14,637 million from $14,637 million. EPS worked out to $1.24 as against $1.29 in the last period.

The major products like Gilenya, Afinitor, Tasigna, Galvus, Lucentis, Xolair, the COPD portfolio and Jakavi contributed 42 per cent of of pharmaceutical division sales as compared to 36 per cent in the last period. Sales growth was impacted by Japan, which saw a continued decline in Diovan sales and biennial price cut for many brands. US sales of Diovan impacted due to inventory destocking ahead of the generic entry in July 2014.

Alcon net sales improved 3 per cent in second quarter ended June 2014 due to growth in ophthalmic pharmaceuticals and surgical, coupled with strong emerging growth markets performance. The sales of Sandoz division increased by 19 per cent to $ 2.3 billion, as volume growth of 11 percentage points more than compensated for u percentage points of price erosion. However, Asia (excluding Japan) delivered double-digit sales growth.