Novartis no longer expects earnings declines at its underrated Sandoz unit According to Reuters

© Reuters. FILE PHOTO: A sign marks the Novartis Institute Biomedical Research Facility in Cambridge, Massachusetts, U.S., June 16, 2021. REUTERS/Brian Snyder

(Reuters) – Swiss drugmaker Novartis said earnings at its Sandoz unit, which makes low-priced generics that can be put up for sale, are likely to stay flat this year, no longer expectations will decline, and adds that a strategic review is going on as planned. .

In a statement Tuesday, Novartis confirmed the team’s guidance for 2022 core operating income to grow in the single-digit percentage range.

The company reiterated that it will provide an update on the future of Sandoz by the end of 2022.

In the second quarter, the generic drug business benefited from higher prescribing volumes in markets outside the United States.

The pharma specialist also said it is now targeting $1.5 billion in savings from an ongoing cost-cutting plan across the group, where it previously saved up to $1 billion last year. 2024.

“Our lean organizational model implementation is progressing well,” the company said in a statement.

Core operating income for the second quarter fell 2% to $4.27 billion, slightly above the average analyst estimate of $4.19 billion in a Refinitiv poll.

For Novartis, which reports results in dollars, a strong dollar is a drag on the value of sales generated outside of the US.

Contributing to the decline, Novartis in May had to suspend production of cancer drugs The correct kernel mail is called radioligands. In addition, competition is another drag on the sale of the multiple sclerosis drug Gilenya.

Building momentum, quarterly revenue from heart failure drug Entresto jumped 27% to $1.13 billion, falling short of expectations.

Sales of the psoriasis and arthritis drug Cosentyx jumped 9% to $1.28 billion, in line with market consensus.

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