
Mounting US pricing pressures cutting into quarterly sales, Novartis admits
pharmafile | May 31, 2017 | News story | Research and Development, Sales and Marketing | Novartis, Sandoz
Novartis has revealed that increasing pressure on pricing in the US has impacted its second-quarter business, cutting into sales generated by its generics arm, Sandoz, compared to its performance in the first quarter.
“The impact of US pricing pressure and prior year launch timing is expected to have a higher impact on second quarter 2017 sales growth than (in the) first quarter,” Novartis explained at an investor conference in Boston.
In the first quarter of this year, Sandoz was responsible for around 12% of the company’s $11.5 billion sales, but when compared to the same period in 2016, topline growth has slowed by 1%.
However, despite this the company also added: “Full year 2017 Sandoz sales guidance, expected to be broadly in line with prior year, remains unchanged.”
Additionally, the company noted that it is considering “all options” regarding its ailing eyecare unit Alcon, adding: “With continued innovation, investment and improved operations, Alcon expects to return to long-term, sustainable growth with margins in line with industry peers.”
“Novartis is conducting a strategic review of the Alcon Division exploring all options to maximize value for our shareholders. The review is on track and Novartis expects to provide a status update towards the end of 2017.”
Matt Fellows
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