(Reuters)Novartis’ quarterly operating income went down because Gilenya prescriptions went down because of competition, but Sandoz’s profit outlook got better.
Novartis’ sales outside the U.S. were also hurt by the high dollar.
Third-quarter group core operating income fell 4% to $4.28 billion, below the average analyst forecast of $4.30 billion.
Quarterly revenue fell 4% to $12.54 billion, missing market expectations of $12.9 billion.
Even without currency fluctuations, Novartis still expected sales and core operating income to grow by “mid-single-digit” percentages, but it raised its earnings estimate for Sandoz, which will be spun off next year.
The division’s core operating income is predicted to improve by “low single digits” due to sales of cheaper biotechnology treatments that have lost patent protection. The unit was expected to earn flatly.
Last Monday, the U.S. Supreme Court rejected Novartis’ request to prevent generic versions of Gilenya, a $2.8 billion multiple sclerosis medicine.
Gilenya sales plummeted 24% to $507 million, below expectations of $555 million.
