SerpApi.Org
NovartisNVS stock popped Tuesday on a solid second-quarter report, despite feeling continued heat from generic rivals for big-name drugs like Entresto and Xolair.
In total, sales grew 3% to $14.41 billion, easily topping expectations for $14.07 billion, according to FactSet. Excluding the impact of exchange rates, sales ticked 1% higher. But, while volume contributed 18 percentage points to that growth, generic competition delivered a 14-percentage-point hit.
As a result, Novartis reiterated its outlook for the year: net sales will grow by a low single-digit, while core operating income declines by a low single-digit percentage.
On the stock market today, Novartis stock rose 2.9% to 153.87. Shares are consolidating with a buy point at 170.46, according to MarketSurge. Novartis stock is sitting on a floor at its 50-day line.
Mixed Top 20 Brands
In addition to the top-line beat, Novartis also reported solid earnings. Core earnings came in at $2.41 per share, down a penny year over year, but well ahead of projections for $2.17.
Across its top 20 brands, nine put up double-digit sales growth, in constant currency. The biggest among them, Cosentyx, generated $1.82 billion in sales, beating expectations for $1.73 billion. Sales of Cosentyx, which treats autoimmune conditions like psoriasis and arthritis, grew 10%.
Revenue from Kisqali, a breast cancer drug, surged 43% to nearly $1.7 billion. That was roughly in line with projections for $1.71 billion. Sales of multiple sclerosis treatment Kesimpta also flew ahead, rising 32% to $1.42 billion.
But five brands had double-digit sales declines, and all are facing generic or biosimilar competition. Revenue from heart failure med Entresto plummeted 51% in constant currency to $1.18 billion. Xolair sales skidded 25% to $342 million. Xolair treats allergic conditions.
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