Pharmaceuticals – Strong results for Novartis, studying future of Sandoz

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The Rhine group achieved a turnover up 6% in the third quarter, to 13 billion dollars, for a net profit of 3.8 billion (+ 10%).

The Basel pharma will analyze the future of its subsidiary Sandoz, a specialist in generic drugs.

DR

“We are starting a strategic review of Sandoz, to maximize its shareholder value,” Novartis chief executive Vas Narasimhan said in a statement Tuesday. This analysis will explore all the options for the future of the subsidiary, world leader in generics and biosimilars, ranging from maintaining activities to separation. The group had already separated from its subsidiary Alcon, specializing in ophthalmology, by listing it on the stock market in 2019.

Price pressure

Sales of Sandoz were down 1% from the third quarter last year to $ 2.4 billion, down 2% excluding currency effects, due to pricing pressures despite higher prices. volumes. If its sales increased by 2% in Europe, they plunged by 20% in the United States where generic drugs are subject to strong competitive pressure.

Results on the rise

For the company as a whole, Novartis reported quarterly sales up 6% to $ 13 billion and a 10% jump in net income to $ 3.8 billion. The sales of its pharmaceutical division, on which the group has emphasized over its reorganizations, climbed 8% to 10.6 billion. Over the whole of 2021, the group expects a growth in its net turnover “to a figure between the bottom and the middle of the range”.

Confidence in the future

Vas Narasimhan welcomed the continued “rejuvenation of our portfolio” of drugs. “We remain confident in the strength of our pipeline and launch brands, in order to fuel the growth of our business in the medium and long term,” he said in the statement.

(reg / afp)

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