Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Novartis profit tops expectations as pandemic impact ebbs

Stock MarketsJul 21, 2021 06:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of Swiss drugmaker Novartis is pictured at the company's headquarters in Rueil-Malmaison near Paris, France, April 22, 2020. REUTERS/Charles Platiau

By Michael Shields

ZURICH (Reuters) - Swiss drugmaker Novartis beat second-quarter sales and profit expectations on Wednesday, while keeping its 2021 guidance unchanged, as disruption from the coronavirus pandemic waned.

"While demand is starting to return to pre-COVID-19 levels in most geographies and therapeutic areas, we still see a slight impact on parts of our business for example in oncology, generics and certain geographies," it said.

"We are assuming further easing of COVID-19 restrictions in the second half of the year with a positive impact on business dynamics."

Finance chief Harry Kirsch told reporters that the pandemic was still weighing, for instance, on cancer patients' diagnostic rates, which crimped sales of products sold via hospitals.

He estimated business was probably averaging 80-90% of pre-COVID levels, with strong divergences by category and country.

Novartis boosted core net profit by a fifth to $3.72 billion. Core operating income rose 18% to $4.35 billion. The gain of 13% in constant currencies was up around 4% excluding the impact of destocking in the year-earlier quarter after customers rushed to lay in supplies early last year, it said.

Sales in the three months through June rose 14% to $12.96 billion, a gain of 9% when stripping out currency fluctuations.

Analysts polled by Refinitiv had on average expected net profit of $3.46 billion on revenue of $12.52 billion.

Novartis said its key drug brands were performing well and its product development pipeline continued to progress.

It reiterated it expected 2021 sales to grow by a low- to mid-single digit percentage rate at constant currencies, with core operating income growing at a mid-single digit rate.

Its shares rose 2.2% in early trading, ahead of the European health care sector index, which was up 0.9%.

Vontobel analyst Stefan Schneider said results clearly beat expectations but the company's failure to upgrade its guidance "indicates that the pandemic situation has not yet returned fully to pre-pandemic levels and that the situation remains somewhat unpredictable due to the emerging variants".

Novartis profit tops expectations as pandemic impact ebbs
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email