Novartis Posts Q2 Earnings Beat As Sales Pick Up; Reiterates 2021 Guidance


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Novartis AG (NYSE:NVSboosted its second-quarter core net income by 20% Y/Y to $3.7 billion, beating market expectations as it kept its 2021 guidance.

Earnings: The Company posted core EPS of $1.66, well ahead of the consensus of $1.52.

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In the three months through June, sales rose 14% to $12.96 billion, higher than expected revenue of $12.51 billion, a gain of 9% when stripping out currency fluctuations.

Pharmaceuticals segment sales grew 18% Y/Y to $6.6 billion (constant currency (cc) +12%) with continued strong growth from Entresto ($886 million, +53%, +46% cc), Cosentyx ($1.2 billion, +24%, +21% cc), Zolgensma ($315 million, +54%, +48% cc).

Newly launched multiple sclerosis drug Kesimpta achieved sales of $66 million during the quarter.

Oncology unit grew 11% Y/Y to $3.9 billion (+7%, cc) driven by Promacta/Revolade +22% to $518 million (+18% cc), Jakavi up 28% to $398 million (+19% cc), Kisqali +42% to $225 million (+36% cc).


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Sandoz grew 11% to $2.4 billion (+5% cc) as the business stabilized.

Q2 core operating income grew 18% to $4.3 billion (+13% cc) driven by higher sales and favorable gross margin, partly offset by higher spending. Q2 free cash flow of $4.2 billion increased 17%.

"While demand is starting to return to pre-COVID-19 levels in most geographies and therapeutic areas, we still see a slight impact on parts of our business, for example, in oncology, generics, and certain geographies," it said.

"We are assuming further easing of COVID-19 restrictions in the second half of the year with a positive impact on business dynamics."

Outlook: It reiterated it expected 2021 sales to grow at a low- to mid-single-digit percentage rate, with core operating income seen growing at a mid-single-digit percentage rate ahead of sales.

See the Q2 Interim Report here.

Price Action: NVS are up 1.7% at $91.78 during the premarket session on the last check Wednesday.

Photo by Arek Socha from Pixabay


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: BiotechEarningsNewsGuidanceHealth CareGeneral