Novartis Q1 profit down on US generic erosion

Novartis reported first-quarter core operating profit below market expectations as generic competition for Entresto weighed on sales. The miss highlights pressure on one of the company’s top-selling heart drugs and adds near-term headwinds to earnings performance. The update is likely to be a modest negative for the shares, though not a sector-wide event.

Analysis

Novartis reported first-quarter core operating profit below market expectations as generic competition for Entresto weighed on sales. The miss highlights pressure on one of the company’s top-selling heart drugs and adds near-term headwinds to earnings performance. The update is likely to be a modest negative for the shares, though not a sector-wide event.