{"id":22233,"date":"2023-04-25T09:09:31","date_gmt":"2023-04-25T09:09:31","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/novartis-lifts-full-year-earnings\/"},"modified":"2023-04-25T09:13:32","modified_gmt":"2023-04-25T09:13:32","slug":"novartis-helped-by-cost","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/novartis-helped-by-cost\/","title":{"rendered":"Novartis, helped by cost cuts, raises full-year outlook"},"content":{"rendered":"<p>By Ludwig Burger<\/p>\n<p>FRANKFURT (Reuters) -Novartis on Tuesday raised its full-year earnings outlook following cost cuts, a breast cancer drug trial success and progress in boosting output of a radiotherapy drug against prostate cancer.<\/p>\n<p>The Swiss drugmaker said in a statement that excluding Sandoz, a generic drug division to be spun off in the second half of the year, group core operating income would grow by a &#8220;high single digit to low double digit&#8221; percentage.<\/p>\n<p>It had previously forecast a &#8220;mid-to-high single digit&#8221; increase. In addition, cost cuts over the past year were now translating into higher profits, CEO Vas Narasimhan said.<\/p>\n<p>First-quarter group sales rose 3% to $12.95 billion, above an analyst consensus of $12.6 billion Refinitiv Eikon data showed.<\/p>\n<p>Better-than-expected revenue from psoriasis and arthritis drug Cosentyx helped. <\/p>\n<p>New drugs Kesimpta, a once-a-month injection against multiple sclerosis, and breast cancer treatment Kisqali also contributed to sales growth, Novartis said.<\/p>\n<p>Its shares gained 2.8% at 0832 GMT, reaching their highest since early 2020, when the stock plunged from a record high on safety concerns over eye drug Beovu. JP Morgan analysts highlighted that recently launched drugs did particularly well.<\/p>\n<p>&#8220;Each of the key new launches beat consensus,&#8221; they said.<\/p>\n<p>Novartis has struggled with the production ramp-up of Pluvicto against prostate cancer but it said this month that it received approval to add a facility in Millburn, New Jersey, to the sites making the drug.<\/p>\n<p>Kisqali last month was shown to cut the risk of recurrence in women who were diagnosed at an early stage.<\/p>\n<p>That was a key win for CEO Narasimhan, who had been under investor pressure to improve near-term drug development prospects after a drop in sales of established drugs &#8211; Lucentis against a common eye disease in the elderly, and Gilenya against multiple sclerosis.<\/p>\n<p>&#8220;To really focus on our top geographies, top brands, and also streamline the various management layers, is allowing us to get additional cost efficiencies,&#8221; the CEO said on a media call.<\/p>\n<p>The planned Sandoz spin-off remains on track for the second half of 2023, the company said, adding that a capital markets day on June 8 in New York would be dedicated to the business.<\/p>\n<p> (Reporting by Ludwig Burger; editing by Rachel More, Jason Neely and Tomasz Janowski)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/novartis-helped-by-cost\/file-photo-the-logo-of-swiss-drugmaker-novartis-is-pictured\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3O03X-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3O03X-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Ludwig Burger FRANKFURT (Reuters) -Novartis on Tuesday raised its full-year earnings outlook following cost cuts, a breast cancer drug trial success and progress in boosting output of a radiotherapy drug against prostate cancer. The Swiss drugmaker said in a statement that excluding Sandoz, a generic drug division to be spun off in the second [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":22234,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-22233","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3O03X-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/22233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=22233"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/22233\/revisions"}],"predecessor-version":[{"id":22438,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/22233\/revisions\/22438"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/22234"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=22233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=22233"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=22233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}