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In a statement on Tuesday, Novartis confirmed its group guidance for 2022 core operating income to grow in a mid-single digit percentage range.
The company reiterated that it would provide an update on the future of Sandoz by the end of 2022.
During the second quarter, the generic-drugs business benefited from higher prescription numbers in markets outside the United States.
The pharma major also said it was now targeting $1.5 billion in savings from an ongoing group-wide cost cutting scheme, where it had previously seen savings of up to $1 billion by 2024.
“Implementation of our streamlined organizational model is progressing well,” the company said in a statement.
Second-quarter core operating income declined 2% to $4.27 billion, slightly above the average analyst estimate of $4.19 billion in a Refinitiv poll.
For Novartis, which reports results in dollars, a strong dollar was a drag on the value of sales generated outside the United States.
Contributing to the decline, Novartis in May had to suspend https://www.novartis.com/news/media-releases/novartis-provides-update-production-radioligand-therapy-medicines production of precision nuclear cancer medicines known as radioligands. In addition, competition was a further drag on sales of multiple sclerosis drug Gilenya.
Providing growth momentum, quarterly revenue from heart failure drug Entresto jumped 27% to $1.13 billion, a touch below expectations.
Sales of psoriasis and arthritis drug Cosentyx gained 9% to $1.28 billion, in line with the market consensus.
