Currency takes toll on Novartis’ 2nd-qtr; profit and sales miss analysts’ estimates

Swiss pharma giant Novartis (NOVN: VX) this morning posted second-quarter 2015 financial results, showing that core operating income was down 7% to $3.6 billion, but increased 6% at constant currencies, reflecting the strength of the US dollar in which the company reports.

Net sales amounted to $12.7 billion, a decline of 5% (+6% cc). Core earnings per share were $1.27, a fall of 7% (+7% cc). Core net income came in at $3.1 billion, down 8% (+5% cc). Analysts in a Reuters poll had forecast total group net sales of $12.8 billion and group core net income of $3.2 billion. Novartis’ shares fell 2.44% to 99.80 Swiss francs by mid-morning trading.

Commenting on the results, chief executive Joseph Jimenez said: "Novartis had a strong quarter for innovation, with US approval and launch of both Entresto [sacubitril and valsartan] and Glatopa [glatiramer acetate] being key highlights. Additionally, we reported a broad range of positive clinical data across franchises, including Tafinlar/Mekinist [dabrafenib] in metastatic melanoma and Cosentyx [secukinumab] in ankylosing spondylitis. We are confident we will deliver on our priorities for the year, and confirm our full-year guidance."