Alcon’s sluggish Q2 hits Novartis

(Reuters) — A weak performance from eyecare division Alcon, plus the strong dollar, hit Novartis (NYSE:NVS) in the 2nd quarter, scuppering hopes that the Swiss drugmaker would raise its 2015 financial outlook. The difficulties at Alcon reflected lower sales of contact lenses, intraocular lenses and surgical equipment, offsetting a solid showing in pharmaceuticals and an impressive sales jump within the Sandoz generics business. With overall quarterly core net income falling short of expectations, Novartis lowered its full-year sales forecast for Alcon and raised guidance for Sandoz. The unchanged overall outlook for the year disappointed investors and shares in the company dropped 2.5%, retreating from recent record highs. “Hopes of a mid-year guidance upgrade have been dashed due to Alcon,” Berenberg Bank analyst Alistair Campbell said. Novartis acquired the last remaining stake in Alcon in 2011 for $12.9 billion. Still, the hit from the dollar, in which Novartis posts results, had been expected and the group can now look forward to accelerating underlying growth as it rolls out innovative new drugs, such as heart failure treatment Entresto, and more copies of complex biotech medicines. Expectations for Entresto have been building since it won early U.S. approval and Novartis set a higher than expected price, with analysts now forecasting $4.7 billion of sales in 2020, according to Thomson Reuters Cortellis. CEO Joe Jimenez said Entresto sales would take tim...
Source: Mass Device - Category: Medical Equipment Authors: Tags: MassDevice Earnings Roundup Optical/Ophthalmic Alcon Inc. Novartis AG Source Type: news