Novartis CEO warns reality of Trump's drug pricing policy will set in over 'the next 18 months'
Novartis reported first-quarter sales of $13.1 billion, falling short of analyst expectations. The decline was attributed to the rapid erosion of sales from key medications due to generic competition. The company anticipates a challenging first half of the year but expects growth to pick up in the latter half.
- ▪First-quarter sales were $13.1 billion, below the expected $13.5 billion.
- ▪Sales of heart drug Entresto fell 42% following the expiration of its U.S. patent.
- ▪Novartis experienced a 1% year-on-year decline in sales, driven by generic competition.
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The Swiss company posted first-quarter sales of $13.1 billion, below the $13.5 billion expected by analysts polled by FactSet and reflecting a 1% decline year-on-year. Sales declined by 5% on a constant currency basis. Earnings per share came in at $1.65, down 10% year-on-year. The miss was driven by faster-than-expected generic erosion of the company's best-selling medicines Entresto, Promacta, and Tasigna, which each missed by between 7% and 17%, according to Citi analysts. The sales decline was only partially offset by the growth of newer medicines like breast cancer treatment Kisqali and multiple sclerosis drug Kesimpta.Sales of heart drug Entresto fell 42% after its U.S. patent expired. It faces loss of exclusivities in Europe later this year.
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