Novartis: raises 2019 guidance on strong demand

(CercleFinance.com) - Novartis raised its full-year guidance for both sales and core operating income on the back of strong demand for its newest drugs.


The Swiss drugmaker's second-quarter core operating income grew 20 percent, which was better than expected, on sales up 8 percent at 11.7 billion dollars, which was also above analysts' consensus.

One of the group's key growth drivers was psoriasis drug Cosentyx, with sales up 25 percent at constant currencies due to strong demand in the US.

Heart drug Entresto also delivered a strong quarter with sales up 81 percent at constant currencies, a momentum fuelled by increased demand in both hospital and ambulatory settings.

The newly-focused company following the recent spin off of the eye-care business raised its sales goal for 2019, now expecting mid- to high-single digit growth at constant currencies.

Its core operating income target has also been revised upwards, with the group expecting profit growth in the low double digit to mid-teen range at constant currencies this year.

At 10:15, shares in Novartis were trading 2.9 percent higher, largely outperforming the Swiss index (+0.4 percent).

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