Novartis misses estimates as it posts 57% fall in 4th-qtr net income

Swiss pharma giant Novartis (NOVN: VX) this morning posted financial results, showing that net sales for the fourth quarter of 2015 were $12.5 billion (-4% reported, +4% at constant exchange rates). Growth products contributed $4.3 billion or 35% of net sales, up 16% over the prior-year quarter. Novartis shares fell 3.5% to 80.75 Swiss francs by 10.00 CET.

Operating income was $1.7 billion (-29%, -12% cc), mainly due to the decline in Alcon and legal settlement provisions. Net income was $1.1 billion (-57%, -34% cc), impacted by a prior-year exceptional pre-tax gain of $0.4 billion from the sale of Novartis‘ shares in LTS Lohmann Therapie-Systeme AG, as well as exceptional charges of $0.3 billion related to the firm‘s Venezuela subsidiaries in the 2015 quarter. Core net income, which strips out one-time events such as impairments or gains, fell 5% to $2.7 billion, in line with analysts’ expectations, though revenues missed their forecasts of $12.7 billion

Full-year 2016 guidance