Novartis reports healthy profit
pharmafile | April 25, 2014 | News story | Sales and Marketing | Afinitor, Gleevec, Glivec, Novartis, Q1, lilly
Multiple sclerosis drug Gilenya and cancer treatment Afinitor were among the biggest sellers for Novartis, as the Swiss company’s net profit for the first quarter of 2014 rose by 24 per cent.
It jumped from $2.42 billion in the same period last year to $2.97 billion in the first three months of this year, on turnover up just 1% to $14.0 billion.
However, pharma sales were down 1% to $7.8 billion and operating profit fell further, dropping 13% to $2.2 billion – although the manufacturer puts this down largely to $252 million in restructuring charges plus the closure of a US plant.
There are other challenges looming: the active ingredient in its big-selling oncology brand Gleevec/Glivec will expire later this year in Japan, in 2015 in the US and in 2016 in major European countries.
However, the oncology portfolio will be bolstered as part of Novartis’ multi-billion dollar transaction with GlaxoSmithKline, announced this week and expected to go through by June next year.
This combines the companies’ consumer health units under GSK’s majority (63.5%) control, while also in effect swapping some of their major assets.
GSK is selling its cancer portfolio to Novartis for a maximum of $16 billion, and in turn Novartis will let GSK acquire its own vaccines business for up to $7.1 billion.
It means Novartis gets access to BRAF V600E positive melanoma treatments Tafinlar (dabrafenib) and Mekinist (tametinib), for which combined sales in excess of $450m by 2021 are forecast.
“Novartis delivered a solid quarter, with all divisions contributing to growth,” says chief executive Joseph Jimenez. “The transformational deals announced on Tuesday position the company for future success based on our sharpened focus, innovation power and financial strength.”
And Novartis highlighted the fact that what it calls ‘growth products’ such as Gilenya, Afinitor/Votubia, leukaemia treatment Tasigna and eye drug Lucentis together generated $3.2 billion – which was 41% of the division’s net sales (up from 35% in Q1 2013).
The drugs in this growth segment were either launched no earlier than 2008 or carry exclusivity until at least 2017 in key markets.
Meanwhile net sales in emerging markets rose 9% year-on-year, led by China, which recorded a 17% rise in sales.
In a separate move, Novartis this week announced it is offloading its animal health division to Eli Lilly for $5.4 billion.
Adam Hill
Related Content
Novartis receives SMC approval for early breast cancer treatment
Novartis has announced that its treatment for early breast cancer, Kisqali (ribociclib), has received approval …
Novartis candidate for Sjögren’s disease presents positive results
Novartis has reported positive results from two phase 3 clinical trials – NEPTUNUS-1 and NEPTUNUS-2 …
First malaria medicine for infants under 4.5kg receives approval
Coartem (artemether-lumefantrine) Baby, or Riamet, has been approved by Swissmedic as the first malaria medicine …
