Operating profit set to grow as Novartis prepares to spin off its Sandoz generics business

Date:

Share post:

Novartis on Wednesday (February 1) predicted that core operating income would grow in a “mid single digit” percentage range in 2023 following stagnation last year, as the Swiss drugmaker prepares to spin off its Sandoz generics business.

Full-year core operating income was broadly flat at $16.7 billion, it said in a statement, coming in slightly below market expectations of $16.8 billion.

Adjusted for overall negative currency effects, group sales in 2022 advanced 4 per cent to $50.5 billion as gains from heart failure drug Entresto and multiple sclerosis (MS) drug Kesimpta were partly offset by competition from cheap generic copies of established MS drug Gilenya.

Novartis said it was on track to spin off its generics unit Sandoz in the second half of the year as part of its effort to sharpen its focus on its patented prescription medicines.

Analysts have welcomed a programme unveiled in 2022 to trim costs and cut 8,000 jobs and plans to focus on fewer therapy areas and drug technologies. But the market has been underwhelmed by prospects for medium-term growth from new drugs.

Credit Suisse analysts said that best-selling psoriasis and arthritis drug Cosentyx fell short of estimates as the company cited retroactive price cuts under the U.S. Medicaid programme for low-income households.

They were also disappointed by guidance for Sandoz’s core operating income to decline by a “low double digit” percentage in 2023 due to cost inflation and investments to make it a stand-alone entity.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Current Issue June 2023

Related articles

MHRA grants authorisation for LEO Pharma’s Adtralza 2 mL pen solution

The Medicines and Healthcare Products Regulatory Agency (MHRA) has approved the marketing authorisation of Adtralza, a dermatological solution...

Grundon launches maiden UK-wide inhaler recycling programme

Grundon Waste Management has introduced what it claims to be the UK's first verified nationwide inhaler return and...

‘Record fine imposed on hydrocortisone manufacturers for dominant position abuse and 10,000% price increase’

The Competition Appeal Tribunal (CAT) has upheld the Competition and Markets Authority’s (CMA) findings against two pharmaceutical manufacturers...

Vision Report: Legal reforms, adequate funding imperative for success of community pharmacy

Achieving the community pharmacy vision necessitates legal adjustments and additional funding beyond recent boosts, the pharmacy vision document...