Novartis Clocks 4% Drop In Quarterly Sales, Once Again Perks Up Sandoz Earnings Outlook

Novartis AG NVS has reported a core EPS of $1.58 in Q3 FY22 compared to $1.71 a year ago, beating the consensus of $1.57.
Net sales were $12.54 billion, down 4% Y/Y or up 4% at constant currency (CC), missing the consensus of $12.99 billion.
Operating income was $2.2 billion (-33%, -23% cc), mainly due to higher impairments ($0.5 billion) and higher restructuring costs ($0.4 billion).
Core net income reached $3.4 billion (-11%, -2% cc), as growth in core operating income was more than offset by the loss of Roche's core income.
Quarterly revenue from heart failure drug Entresto jumped 31% to $1.14 billion. Sales from the breast cancer drug, Kisqali, jumped 49% to $327 million based on increasing recognition of OS and quality of life benefits.
Last week, the U.S. Supreme Court rejected Novartis' effort to block the launch of generic versions of its multiple sclerosis drug Gilenya.
Sales from Kesimpta for multiple sclerosis more than doubled to $289 million, mainly driven by the U.S. launch momentum.
Guidance: Novartis reiterates its FY22 guidance, with sales and core operating income to grow mid-single digits.
For Sandoz, NVS expects sales to grow low to mid-single digits. Core operating income is expected to grow low single digits, revised upwards from low single digits and broadly in line, respectively.
Price Action: NVS shares closed at $77.71 on Monday.

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