the republic logo

Novartis posts 3 percent profit rise for 2Q, cites strong momentum for new product development

Share/Save/Bookmark

GENEVA — Swiss pharmaceutical company Novartis AG posted a 3 percent rise in second-quarter profits Thursday, reflecting what it described as solid growth and an increased focus on core products.

Profits during the April-June quarter rose to $3.28 billion, up from $3.18 billion in the same quarter of 2013, helped by "strong innovation momentum" and rising sales in some of its household brands, the Basel-based company reported.

Earlier this year, the company launched a major overhaul of its business with a series of multibillion-dollar deals with Britain's GlaxoSmithKline PLC and the U.S.'s Eli Lilly & Co., a reflection of the restructuring that's occurring in the fast-changing industry.

PHOTO: FILE - This Oct. 25, 2011 file photo shows the logo of Swiss pharmaceutical company Novartis AG on one of their buildings in Basel, Switzerland. Swiss pharmaceutical company Novartis AG posted a 3 percent rise in second-quarter profits Thursday, July 17, 2014, reflecting what it described as solid growth and an increased focus on core products. Profits during the April-June quarter rose to $3.28 billion, up from $3.18 billion in the same quarter of 2013, helped by "strong innovation momentum" and rising sales in some of its household brands, the Basel-based company reported.(AP Photo/Keystone, Georgios Kefalas, File)
FILE - This Oct. 25, 2011 file photo shows the logo of Swiss pharmaceutical company Novartis AG on one of their buildings in Basel, Switzerland. Swiss pharmaceutical company Novartis AG posted a 3 percent rise in second-quarter profits Thursday, July 17, 2014, reflecting what it described as solid growth and an increased focus on core products. Profits during the April-June quarter rose to $3.28 billion, up from $3.18 billion in the same quarter of 2013, helped by "strong innovation momentum" and rising sales in some of its household brands, the Basel-based company reported.(AP Photo/Keystone, Georgios Kefalas, File)

Novartis confirmed its outlook for 2014 is for mid-to-high single-digit sales growth, partly due to its confidence from progress and approvals for cancer and heart drugs that are in development.

CEO Joseph Jimenez told reporters the company delivered a solid quarter and is benefiting from "a sweeping transformation" of its commercial portfolio.

Novartis said Thursday its deal to buy GSK's cancer-drug business for $14.5 billion, plus up to $1.5 billion more if certain milestones are met, is now expected to close in the first half of 2015. The Swiss company has agreed to sell most of its vaccines business to GSK for $7.1 billion, plus royalties, giving GSK better market position with Bexsero, a meningitis B vaccine. The two firms are also creating a new consumer health care business.

Separately, Novartis is selling its animal health division to Eli Lilly for about $5.4 billion, in a deal it said Thursday is now expected to close in the first quarter of 2015. The Indianapolis-based Lilly has been hit hard by patent expirations and has staked its recovery in part on new drugs it develops and its animal health business.

Think your friends should see this? Share it with them!

All comments are moderated before posting. Your email address must be verified with Disqus in order for your comment to appear.
View our commenting guidelines and FAQ's here.

Story copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Feedback, Corrections and Other Requests: AP welcomes feedback and comments from readers. Send an email to info@ap.org and it will be forwarded to the appropriate editor or reporter.


We also have more stories about:
(click the phrases to see a list)

Category:

Follow The Republic:

All content copyright ©2014 The Republic, a division of Home News Enterprises unless otherwise noted.
All rights reserved. Privacy policy.