Novartis sees negative currency impact in 4th-qtr 2014; gives positive 2015 guidance

Swiss pharma major Novartis (NOVN: VX), now the world’s largest drugmaker by sales, this morning posted financial results showing that group operating income for the fourth quarter of 2014 decreased 49% (-39% constant currency) to $1.2 billion. Novartis shares edged up 0.69% to 87.60 Swiss francs in early trading.

This was due to an exceptional pre-tax impairment charge of $1.1 billion related to the pending divestment to CSL Limited of the influenza vaccines business. Currency had a negative impact of 10 percentage points, primarily due to the weakening of the euro, yen and rouble against the US dollar. Core operating income increased 1% (+9% cc) to $3.3 billion.

Group net sales amounted to $14.6 billion (-2%, +4% cc) in the fourth quarter, slightly ahead of the average forecast for $14.6 billion in a Reuters poll. Growth products contributed $4.7 billion or 32% of group net sales, up 14% (US$) over the prior-year quarter.