Novartis 1Q Profit Declined; Sales Rose Slightly -- Update

   By Cecilia Butini 

--Novartis's net profit for the first quarter fell, but sales climbed slightly

--The company's generics division Sandoz experienced sales erosion, exacerbated by a weak cough and cold season

--The coronavirus pandemic affected demand in a number of areas

Novartis AG said Tuesday that profit declined and sales rose slightly in the first quarter.

The Swiss pharmaceutical major posted net profit of $2.06 billion, down from $2.17 billion a year earlier. Sales grew to $12.41 billion from $12.3 billion.

A consensus forecast provided by FactSet had expected net profit at $3.44 billion and sales at $12.52 billion.

Core operating income, or income excluding extraordinary items, was $3.96 billion compared with $4.18 billion a year earlier, the company said.

The company said the decline in core operating income was mainly due to a decline at Sandoz, its generics division. Sales at the division declined 13% at constant currencies during the quarter, Novartis said. Sandoz's decline was exacerbated by a weak cough and cold season, which in turn was partly offset by growth in biopharmaceuticals, the company said.

The coronavirus pandemic hurt demand, particularly in dermatology, ophtalmology, breast cancer drugs, Sandoz retail and anti-infectives, Novartis said.

The company backed its earlier outlook for 2021, saying it still expects net sales growth in the low-to-mid single digits, and core operating income to grow in the mid-single digits. The guidance assumes a return to normal global healthcare systems--including prescription dynamics--by mid-2021, Novartis said.

Write to Cecilia Butini at [e-mail]

(END) Dow Jones Newswires

April 27, 2021 01:49 ET (05:49 GMT)

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