Pharma - Novartis Q2'20 Earning

2020 Full Year Guidance

Sales expected to grow mid single digit.

Core operating income expected to grow low double digit

Q2 2020

Q2 2020 sales $11.3mil (- 4%) and Operating earning $2.4mil (-12%).

Excluding unfav exchange impact, Q2 2020 sales -1% vs PY & operating earning -4%.

Innovative Medicines net sales were USD 9.2 billion (-1%, +1% cc). 

Pharmaceuticals BU sales grew 1% (cc), as the launch uptake of Zolgensma and continuing momentum on Entresto and Cosentyx were mostly offset by the negative impact of the COVID-19 pandemic, particularly in ophthalmology and new patient starts in dermatology. 

Oncology BU grew 1% (cc) as the continuing momentum on Promacta/Revolade, Kymriah, Kisqali and Tafinlar + Mekinist as well as the launch uptake of Piqray was mostly offset by generic competition for Afinitor and Exjade and the negative impact of the COVID-19 pandemic, particularly in radioligand therapy. Generic competition had a negative impact of 4 percentage points, mainly driven by Afinitor, Exjade and Travatan, and net pricing had a negative impact of 4 percentage points. Volume contributed 9 percentage points to sales growth. 

Sandoz net sales were USD 2.2 billion (-11%, -9% cc) as volume declined 9 percentage points (cc) and pricing was in line with prior year, benefiting from favorable revenue deduction adjustments. The sales decline was due to COVID-19 negative impacts, mainly the reversal of Q1 forward purchasing and lower retail demand, some contract discontinuations in the US and a higher prior year base that included several first to market launches. The decline was partly offset by global sales of biopharmaceuticals growing 19% (cc), driven by double digit growth in Europe and the US.

 

1st Half 2020

1st half sales growing 6%, driving core operating earning and EPS growth of 19%.

Sales growth was mainly driven by Zolgensma and Cosentyx.

Core operating earning growth was driven by the higher sales and productivity, partly offset by some launch investments.

Novartis top 3 Innovative Medicines products in 2020: