Geneva, Jul. 18, (dpa/GNA) – Second quarter net income at Swiss pharmaceutical maker Novartis was $2.32 billion, an increase of about 37% from last year, the company reported on Tuesday.
Quarterly earnings per share were $1.11, an increase of 44% from last year.
The company raised its full-year 2023 Group guidance on the back of the results.
Looking ahead for fiscal year 2023, the company now expects group sales to grow high single digit and core operating income growth in low double digit. Previously, it expected annual group sales to grow mid-single digits and core operating income growth in high single digits.
The company said it has initiated an up-to $15 billion share buyback to be completed by year-end 2025, following completion of a previously announced share buyback in June 2023.
The Novartis board of directors has unanimously endorsed the proposed separation of Sandoz to create an independent company by way of a 100% spin-off.
Sandoz is planned to be listed on the SIX Swiss Exchange, with an American Depositary Receipt program in the US.
The proposed spin-off is planned to occur early in the fourth quarter of 2023.
Novartis’ operating income for the quarter was $2.92 billion up 31% from the previous year, mainly driven by higher sales and lower restructuring charges.
Core earnings per share were $1.83 up from $1.56 in the previous year.
Analysts polled by Thomson Reuters expected the company to report earnings of $1.66 per share for the second quarter. Analysts’ estimates typically exclude special items.
Net sales for the second quarter were $13.62 billion, an increase of 7% from the prior year driven by volume growth of 14 percentage points, price erosion of 2 percentage points and the negative impact from generic competition of 3 percentage points.
Analysts expected revenue of $13.17 billion for the quarter.
GNA