By Cecilia Butini

 

Novartis AG on Tuesday posted declining earnings and sales for the third quarter that missed analysts' expectations, though it still backed a previously given 2022 guidance.

The Swiss pharma major reported net profit of $1.58 billion, down from $2.53 billion in the third quarter of the previous year, on sales which declined to $12.54 billion from $13.03 billion in 2021. Analysts had expected net profit of $3.41 billion and sales of $12.89 billion.

Core operating income also declined to $4.28 billion from $4.47 billion, and earnings per share were 73 cents in the quarter, compared with $1.13 the year prior.

Novartis said that generics competition had an impact of three percentage points on its sales, and that operating income was hit by higher restructuring costs and higher impairments, which were $700 million.

As it continues the process of spinning off its generics division Sandoz, Novartis said it has appointed a chief executive designate, Richard Saynor, who will step down from Novartis's executive committee with immediate effect.

Looking ahead, the company backed its 2022 guidance, saying it expects mid-single-digit sales and core operating income growth. Sandoz's guidance was revised upward, seeing sales growth in the low-to-mid-single digits, Novartis said.

 

Write to Cecilia Butini at cecilia.butini@wsj.com

 

(END) Dow Jones Newswires

October 25, 2022 01:45 ET (05:45 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
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