Novartis, helped by cost cuts, raises full-year outlook
Novartis (NOVN.S) on Tuesday raised its full-year earnings outlook following cost cuts, a breast cancer drug trial success and progress in boosting output of a radiotherapy drug against prostate cancer.
The Swiss drugmaker said in a statement that excluding Sandoz, a generic drug division to be spun off in the second half of the year, group core operating income would grow by a “high single digit to low double digit” percentage.
It had previously forecast a “mid-to-high single digit” increase. In addition, cost cuts over the past year were now translating into higher profits, CEO Vas Narasimhan said.
First-quarter group sales rose 3% to $12.95 billion, above an analyst consensus of $12.6 billion Refinitiv Eikon data showed.
Better-than-expected revenue from psoriasis and arthritis drug Cosentyx helped.
New drugs Kesimpta, a once-a-month injection against multiple sclerosis, and breast cancer treatment Kisqali also contributed to sales growth, Novartis said.
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