Swiss drug maker Novartis AG (NVS) reported an improvement in first-quarter 2013 net income to $2.42 billion, or $0.98 per share, from last year's $2.27 billion, or $0.93 per share. Core net income amounted to $3.25 billion, or $1.32 per share in the latest quarter.
Group net sales for the period reached $14.02 billion, an increase from the prior-year restated figure of $13.74 billion, with all units contributing to the growth, while currency had a negative impact of 2 percentage points. Excluding the impact of patent expiries, underlying sales grew 7%, fueled by growth products such as Gilenya, Afinitor, Tasigna, Galvus, Lucentis, Xolair, Arcapta Neohaler/Onbrez Breezhaler and Jakavi, which together contributed $4.2 billion or 30% of Group net sales, up 14% over last year.
On average, 3 analysts polled by Thomson Reuters expected earnings per share of $1.28, on $14.02 billion in sales for the quarter. Analysts' estimates typically exclude one-time items.
Barring unforeseen events, Group outlook for 2013 remains unchanged. Full-year Group net sales are expected to be in line with 2012 in constant currencies, after absorbing the impact of generic competition, which could amount to as much as $3.5 billion. Excluding the impact of generic competition, Group net sales would grow at least in mid-single digits in 2013.
Group core operating income in constant currencies for the year is likely to decline in 2013 in mid-single digits, as a result of generic competition and continued investment in an unprecedented number of launches. Excluding patent expirations, core operating income is projected to grow ahead of underlying sales in 2013.
As Novartis Chairman, Joerg Reinhardt would receive a total annual compensation valued at 3.8 million Swiss Francs via. combination of cash and stock, effective August 1, 2013. Reinhardt would also receive compensation for lost entitlements at his former employer, with a total value of 2.6 million euros.
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