Generic medicines hit Novartis profits
Swiss drugmaker Novartis on Tuesday posted a drop in first half profits amid fierce competition for generic medicines and pricing pressures but said it was set to reach annual targets.
January-June net core income dropped 5 percent to $3.6 billion (3.1 billion euros), as overall first half sales dipped one percent to $23.7 billion, despite a six percent rise in volume, the group said.
Those volumes were buoyed by two medicines deemed to have strong potential — heart drug Entresto and Cosentyx, a treatment for psoriasis.
Stiff competition for generic medicine — not least copy cat drugs for its blockbuster cancer drug Gleevec — has eaten away some 3 percent of current profit margins, while price pressures have accounted for another 2 percent.
For the outlook for the year as a whole Novartis reconfirmed its objectives in saying it expected global sales this year to hit similar levels to 2016.
Article continues after this advertisementIn January, the group announced total sales of $48.5 billion for 2016.