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Novartis delivered solid performance in the first quarter, with eight key regulatory approvals and all divisions contributing to growth
Group net sales of US$14.0 billion grew 2% (+4% cc)
- Core operating income of US$3.7 billion (+3%, +6% cc) grew ahead of sales, improving core operating income margin
- Core EPS of US$1.32 grew 6% (+9% cc)
- Free cash flow reached US$1.3 billion (-37%)
Sustained commitment to innovation resulted in eight key approvals in the EU and US and strong pipeline progress
- EMA approved Jetrea, Bexsero, a new indication for Ilaris and a line extension for Exelon Patch; FDA approved new indications for Exjade and Zortress, a new formulation of tobramycin in a Podhaler device, and a paediatric extension of Glivec in US
- Pipeline strengthened with FDA Breakthrough Therapy designation for LDK378 in lung cancer
Strong performance of growth products and Emerging Growth Markets offset the impact of generic competition
- Growth products including Gilenya, Afinitor, Tasigna, Galvus, Lucentis, Xolair, Arcapta Neohaler/Onbrez Breezhaler and Jakavi grew 14% to US$4.2 billion or 30% of Group net sales for the quarter. Pharmaceutical growth products grew 27% cc to US$2.9 billion, 36% of net sales
- Emerging Growth Markets up 9% (cc); strong performance in China (+21% cc); Russia (+33% cc)
- Impact of patent losses estimated at about US$500 million, more than offset by growth products
Quality remediation continues to be a key priority; highlights for the quarter include: total of 58 health authority inspections, ten of which were conducted by the FDA; the majority were assessed as good or satisfactory; inspection at Lincoln Consumer Health site completed; release of Sentinel from Lincoln; restructuring of Lincoln plant announced
Harry Kirsch named new CFO: Kirsch moves up to Group CFO from CFO Pharmaceuticals, taking over from Jon Symonds. Symonds will become advisor to the CEO until the end of the year, and to facilitate the transition. Kirsch’s track record of improving productivity is well suited to meet challenges of next phase of growth
2013 Group outlook unchanged
