Novartis delivered a solid performance in 2016, absorbing Gleevec US loss of exclusivity while investing in key launches and the Alcon Division turnaround, said the company’s CEO Joseph Jimenez in Wednesday’s results annoucnements.
The Swiss-based drug-maker noted that its drug Cosentyx reached high status in 2016 with sales of $1.1 billion, and the company is now in a position to speed up Entresto sales in 2017, which sold for $170 million in 2016. “We made major strides in advancing our pipeline, executing our bolt-on M&A strategy and implementing our new focused organization. Today we are proposing an increase in our dividend and initiating a share buyback of up to USD 5 billion. Additionally, we are reviewing options for the Alcon Division to maximize shareholder value,” said the Jimenez.
The company saw net income up by 1% year over year, driven by high income from associated companies. The fourth quarter 2016 net sales were $12.32 billion, 2% down from Q4 2015. Full year net sales were $48.52 billion, aslo 2% down compared to 2015.
Novartis’s net income in Q4 2016 was $2.65billion, and full year net income was $11.31 billion, 6% less than in 2015.
The company expects the net sales expected to be similar to the previous year, after absorbing the impact of generic competition.
“Core operating income expected to be broadly in line with prior year to low single digit decline,” the company said in its press release.