Novartis Expects FY22 Sales, Profit Growth; Sandoz Review Continues

Novartis AG NVS reported a Q4 net income of $16.31 billion, up from $2.1 billion the previous year, benefiting from the sale of its stake in Roche Holding AG RHHBY.

• Core operating income also rose in the quarter, reaching $3.82 billion from $3.50 billion the year prior. Core EPS increased to $1.40 from $1.34.
• Sales grew to $13.23 billion from $12.77 billion in the same quarter of 2020, driven by a strong performance in its Innovative Medicines division.
• Revenues from arthritis and psoriasis drug Cosentyx gained 13% in CC to $1.24 billion.
• Heart failure treatment Entresto sales jumped 34% in CC to $949 million.
• Dividend: Novartis proposed an increased dividend for 2021 of CHF3.10, up from CHF3 a share.
• Looking Ahead: Novartis forecast Sandoz sales would be broadly in line with the 2021 level, while the division's core operating income is expected to fall at a low-to-mid-single-digit rate.
• The company expects overall sales and core operating income to grow mid-single digit.
• It forecasts Innovative Medicines Sales to grow mid to single digit, while operating income to grow mid to high single-digit, ahead of sales.
• The strategic review of generic division Sandoz is progressing, it added, and it expects to provide an update at the end of 2022 at the latest.
• Related: Carlyle, Blackstone Mull $25B Buyout For Novartis' Sandoz Arm: Report.
• Price Action: NVS shares are down 2.93% at $85.60 during the premarket session on the last check Wednesday.