Novartis 1st-quarter financials miss expectations

27 April 2021

Swiss pharma giant Novartis (NOVN: VX) today released first-quarter 2021 financial results, which failed to meet analysts’ expectations.

Net sales were $12.4 billion (+1%, -2% constant currency) in the first quarter driven by volume growth of 3 percentage points, price erosion of 2 percentage points and negative impact from generic competition of 3 percentage points. This compared to $12.5 billion forecast in the Refinitiv poll. Excluding prior year COVID-19 related forward purchasing, Novartis estimates first quarter net sales grew 1% (cc, +4% USD).

Core net income was $3.4 billion (-4%, -6% cc) mainly driven by the decline in core operating income, compared to the $3.5 billion average estimates of nine analysts in a poll by Refinitiv. Core EPS was $1.52 (-3%, -5% cc), declining less than core net income, benefiting from lower weighted average number of shares outstanding.

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