Novartis has posted its second quarter (Q2) results. The group net sales reached $14.3 billion in Q2, with growth from recently launched products more than offsetting the loss associated with the Diovan patent expiration. Currency had a negative impact of five percentage points as a result of the strengthening of the dollar against most major currencies.
Products launched since 2007, which include Lucentis, Gilenya, Afinitor, Tasigna and Galvus, continued to perform strongly. These recently launched products grew eight per cent to $4.1 billion and now comprise 29 per cent of Group net sales, up from 25 per cent a year ago.
Pharmaceuticals had another quarter of good underlying growth despite the Diovan patent expiration in Europe, with net sales of $8.3 billion. Excluding Diovan, net sales grew eight per cent, demonstrating the strong underlying performance of the division. Recently launched products, the key growth driver for pharmaceuticals, generated $2.8 billion of net sales, growing 28 per cent over the same period last year. These products now represent 34 per cent of division sales, compared to 28 per cent in the year-ago period.
Alcon net sales grew one per cent to $2.6 billion in the quarter. This robust performance was led by strong surgical sales growth of three per cent, benefitting from strong cataract product sales in the US and emerging growth markets, as well as contact lens sales growth of two per cent, underpinned by the solid uptake of new products such as the LenSx femtosecond refractive cataract laser and silicone hydrogel lens Dailies Total.
Sandoz net sales declined 13 per cent to $2.1 billion driven by seven percentage points of price erosion. Volume was flat, as the expected lower sales for enoxaparin ($156 million in Q2 of 2012 compared to $284 million in the 2011 period) and US authorised generics, together with the market decline in Germany, offset strong double-digit growth in the rest of Western Europe, Asia, Central and Eastern Europe, and biosimilars. Vaccines and diagnostics net sales were up 17 per cent to $349 million. Sales growth was driven by Menveo, which continued to see double-digit growth in the US, as well as the timing of bulk pediatric shipments in 2011, which produced a weak comparative quarter. Consumer Health, which includes OTC and animal health, declined 24 per cent to $904 million in the quarter, impacted by the suspension of production at the Lincoln, Nebraska manufacturing site.
Commenting on the results, Joseph Jimenez, CEO, Novartis, said, “Novartis achieved eight significant regulatory milestones in Q2, including CHMP recommendation for Afinitor in advanced breast cancer, further enhancing our future growth prospects. Pharmaceuticals and Alcon delivered solid financial performance and operating leverage in the second quarter, underpinned by our continued focus on portfolio rejuvenation, with recently launched products now representing 29 per cent of Group net sales compared to 25 per cent last year.”
EP News Bureau
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