Novartis 1st-qtr sales miss forecasts in face of generic competition

Swiss pharma giant Novartis (NOVN: VX) posted first quarter 2016 financials, showing a decline in sales due to generic competition, as well as a sharp slump in profit due to a year-earlier special item.

Sales from continuing operations for the quarter fell 3% (+1% at constant exchange rates) to $11.6 billion, slightly lower than analysts’ average expectations of $11.89 billion. Sales of top-selling cancer drug Gleevec (imatinib) plunged 22% after the drug lost patent protection in the USA in February,

Net income was $2 billion, compared with$13 billion reported for the year earlier quarter, when earnings were boosted by a $12.8 billion gain on the sale of businesses to GlaxoSmithKline and Eli Lilly. Core net income fell 13% to $2.8 billion, beating the $2.68 billion expected by analysts.