Novartis Slammed: Expects Covid To Impact Drug Sales Until Mid-2021
Novartis stock toppled Tuesday after the drug company said it expects the coronavirus pandemic to weigh on prescription sales until mid-2021.To get more
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The cautious outlook followed a disappointing fourth-quarter report for Novartis (NVS). Sales inched 3% higher to $12.77 billion and core earnings eked out a 2% gain to $1.34 per share. Excluding the impact of foreign exchange rates, sales rose 1% and Novartis earnings grew 3%.
Novartis' innovative medicines business generated $10.2 billion in sales, up 3%. Excluding the impact of exchange rates, sales rose 1%. Meanwhile, the company's generics business — called Sandoz — rose 2% to $2.5 billion in sales. In constant currency, sales were flat.
Novartis stock was especially hurt by guidance. For the year ending in 2021, the pharmaceutical firm expects sales to rise by a low to mid single-digit percentage, in constant currency.
Our guidance assumes that we see a return to normal global health care systems including prescription dynamics by mid-2021," the company said in a news release.
Bullishly, Novartis doesn't expect generic versions of multiple sclerosis drug Gilenya or Sandostatin LAR to hit the U.S. market in 2021. The latter drug treats severe diarrhea and flushing episodes that can occur in some cancer patients.
