Sales rise for Novartis

pharmafile | January 30, 2014 | News story | Sales and Marketing Gleevec, Glivec, Novartis, gilenya, q4, sales 

Multiple sclerosis drug Gilenya, with sales rising 62% year-on-year to $1.9 billion, was one of the stars of last year for Novartis, with the brand’s sales rising by 51% in the final quarter of 2013.

The Swiss company saw turnover rise 2% year-on-year in Q4 to $15 billion, and by 2% again to $57.9 billion for the year as a whole – with a $12.5 billion net profit (the same as in 2012).

In Q4, the group’s core operating income fell 6% to $2.1 billion.

The company’s US performance over the year suffered through generic competition for Zometa/Aclasta (sales down 53% over the year) and Diovan HCT (down 20%), with turnover of $10.3 billion, down 1% on 2012, although emerging markets – $7.7 billion, up 9% – grew strongly.

“Novartis delivered strong performance in 2013, growing both net sales and core operating income in constant currencies while absorbing patent expirations,” chief executive Joseph Jimenez said.

“We maintained good momentum in innovation, with 18 approvals and three FDA ‘breakthrough therapy’ designations. Our growth products continued to expand, rejuvenating our portfolio and reinforcing our growth prospects,” he added.

Over the whole of the year, Novartis’ pharma operations had net sales of $32.2 billion, unchanged from 2012.

What is encouraging for the company is that those drugs Novartis classes as ‘growth products’ – launched in 2008 or later, or carrying exclusivity until at least 2017 in key markets – brought in $12.3 billion in 2013.

This is 38% of division net sales, compared to 31% in 2012.

Apart from Gilenya, Novartis’ biggest sellers included cancer brands Gleevec/Glivec ($4.7 billion, up 1% on 2012) and Afinitor/Votubia ($1.3 billion, a 66% increase), eye drug Lucentis ($2.4 billion, up 1%) and leukaemia treatment Tasigna ($1.3 billion, a rise of 31 per cent).

Elsewhere in Novartis, Alcon’s net sales were $10.5 billion, a 3% year-on-year improvement, and generic business Sandoz saw an increase of 5% to $9.2 billion.

Novartis warned of increasing generic pressure on its own products, saying that the impact on net sales during 2014 is expected to be as much as $3 billion.

And looking ahead, it is well aware that the patent on the active ingredient in Gleevec/Glivec will expire later this year in Japan, in 2015 in the US and in 2016 in major European countries.

However, while this trend is a ‘significant challenge’ for Novartis’ pharma operation and for Alcon, “it is also an opportunity for Sandoz”, the company said.

Adam Hill

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