Tuesday, October 25, 2011

Novartis third quarter results - 2000 job cuts in the US and Switzerland

Novartis today announced third quarter results. The highlights are
  • Net sales increased 18% (+12% in constant currencies, or cc) to USD 14.8 billion; nine months up 20% (+15% cc) to USD 43.8 billion
  • Recently launched product portfolio continues to show robust growth. 29% of pharma sales now come from recently launched products. New patient prescription trends suggests  one in three newly diagnosed CML patients is now starting on Tasigna. Gilenya now  has 6% of the market share in the MS market. Approval of Afinitor in combination with exemestane for post menopausal breast cancer patients should add upto $1billion to its current sales
  • Core operating income grew 11% (+15% cc) to USD 4.1 billion; core margin of 27.7% up 0.6 percentage points in cc; nine months core margin of 28.2% up 0.5 percentage points in cc
  • Core EPS advanced 7% to USD 1.45 (+10% cc) from USD 1.36 in previous-year period
  • Free cash flow grew 27% to USD 3.7 billion
  • 2000 job cuts in the US and Switzerland, while these jobs would be replaced by 700 new positions in the low cost destination