Novartis unit Alcon posts modest Q2 gain

(Reuters) — Long-suffering Novartis (NYSE:NVS) unit Alcon‘s sales growth accelerated in the second quarter, boosting options for the business including a possible disposal, CEO Joe Jimenez said today. The eye care subsidiary’s sales rose 1% to $1.5 billion, including intraocular lens revenues, which grew for the first time in the second quarter since 2014. Spending continued to promote products with eye surgeons, resulting in a $19 million operating loss. Novartis has been reviewing Alcon for a possible disposal, with an update slated for this year. All options are under consideration, Jimenez reiterated today, including a possible initial public offering that he has suggested could value Alcon at $25 billion to $35 billion. “It just increases the options we have,” Jimenez told reporters on a call. “It makes a capital markets exit a possibility, because you’ve got a growing business with presumably over time margins that are going to grow.” The shares opened 1.1% higher in Zurich. Novartis boosted Alcon’s full-year sales outlook slightly and now expects revenue to rise by a low single-digit percentage rate. It previously forecast revenue to remain stable or to rise by a low-single digit percentage. “Although Alcon profits continued to decline, this is now moderating and showing signs that the company have it under control,” Deutsche Bank analyst Tim Race said. For all of Novartis, second-quarter core net income fe...
Source: Mass Device - Category: Medical Devices Authors: Tags: MassDevice Earnings Roundup Mergers & Acquisitions Optical/Ophthalmic Wall Street Beat Alcon Novartis Source Type: news