• Switzerland's news in English
Currency swings hit Novartis bottom line
Photo: Sebastien Bozon/AFP

Currency swings hit Novartis bottom line

AFP · 27 Jan 2016, 09:39

Published: 27 Jan 2016 09:39 GMT+01:00

Facebook Twitter Google+ reddit

Excluding asset sales net profits at the world's largest pharmaceutical company by sales fell by five percent to $12 billion, missing expectations of analysts polled by the Swiss financial news agency AWP of an average of $12.1 billion.
Last year, the company finalized a series of transactions with GlaxoSmithKline, Eli Lily and CSL to offload its vaccine, animal health and consumer health products businesses.
Net sales also slid five percent to $49.4 billion but when currency changes were stripped out that represents a five percent gain, the company said.
Currency swings had a minus ten percent effect on sales and a minus 15 percent effect on core operating income last year, it added.
"In 2015, we completed our portfolio transformation, delivered solid financial results and improved core margin despite a very strong currency impact," chief executive Joseph Jimenez said in a statement.
Core operating income margin climbed 1.3 percentage points in constant currency terms.

Central to Novartis's lacklustre performance were falling revenues at its eye-care unit Alcon, which the company acquired in 2010-11.
The company announced a series of measures on Wednesday aimed at restoring growth at Alcon, where revenue fell by 13 percent in the last quarter to $2.3 billion.
Alcon group CEO will leave the company on February 1st and will be replaced by Mike Ball, who previously headed the American group Hospira.
Also, Alcon's opthalmic medicines business is going to be folded into Novartis's larger pharmaceuticals unit.
Novartis said the move would "simplify" its opthalmic business and create a more dynamic operation by fusing Alcon's strong brand with the development and marketing infrastructure of the larger pharmaceuticals business.
 "With the plan announced today, we intend to return the Alcon business to growth," Jimenez further said.
Separately, Jimenez told Bloomberg TV that an era of sustained price rises for certain medical products in the United States was likely ending amid rising public resentment.
A more rigorous public debate in the US about the cost of drugs, as well as increased regulatory scrutiny, could create price pressure that would force the company to increasingly find savings across its operations.
"We have to exist no matter what the pricing environment is going to look like," he told Bloomberg.
"Novartis is taking decisive action so that over the next few years we will be able to lower our cost base and still invest in R&D, which is really the lifeblood of this industry."

For more news from Switzerland, join us on Facebook and Twitter.

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
Montreux throws hat in Olympic rings
Could Montreux host the 2026 Games? Photo: Ivo Scholz/Swiss Tourism

Montreux is to put itself forward as the host city for the 2026 winter Olympics as part of a potential bid by the cantons of Valais and Vaud.

Geneva car share scheme could help reduce city traffic
Catch a Car is aimed at short hops within a city. Photo: Catch a Car

Catch a Car, already in Basel, launches in Geneva next month.

Swiss women will ‘work for free’ for the rest of year
Female employees in Switzerland earn 19.3 percent less than their male colleagues. File photo: Randy Kashka

Switzerland's gender pay gap means from today, Friday October 21st, women in the country will effectively be working for free for the rest of 2016.

Swiss luxury watches stolen in Paris raid
Police outside the Girard-Perregaux watch store on Thursday. Photo: Bertrand Guay/AFP

The 10 Girard-Perregaux watches are worth half a million euros in total.

Brother-in-law arrested over murder of Swiss teacher
The victim worked in a school in Stabio, near the town of Mendrisio. Photo: Oliver Graf

The primary school teacher was found dead in Ticino earlier this week.

Inside Switzerland’s largest nuclear bunker – 40 years on
Designed to house 20,000 people, the bunker was built in and over two motorway tunnels. Photo: Unterirdisch Ueberleben

The Local takes a tour of the Sonnenberg bunker in Lucerne, opened 40 years ago at the height of the Cold War.

Ten Swiss ski resorts named most expensive in Europe
File photo: Renato Bagattini/Swiss Tourism

Skiers in Switzerland pay the highest prices for their ski passes of anywhere in Europe, according to research.

Eco group fights Bern over wind farm plans
There are currently more than 30 wind farms in Switzerland. Photo: Alpiq

Wind turbines are “gigantic and destructive” machines, says Paysage Libre Suisse.

Vegan wins battle to be accepted by Swiss army
Antoni Da Campo will now carry out his military service. Photo: Antoni Da Campo

A Swiss man who was told he would not be accepted for military service because of his strict veganism has finally succeeded in making the army change its mind.

Geneva terror suspects to receive compensation
File photo: Emran Kassim

The Swiss public prosecutor has dropped the case against them.

Sponsored Article
How to vote absentee from abroad in the US elections
Photo: Richard Juilliard/AFP
Man makes Geneva airport bomb threat ‘for a joke’
Sponsored Article
Last chance to vote absentee in the US elections
Photo: AFP
Solar Impulse team reveals plans for unmanned plane
File photo: Martin Abegglen
Swiss to vote on passport rules for 3rd gen foreigners
Sponsored Article
How to vote absentee from abroad in the US elections
Photo: AFP
Swiss wingsuit hotspot Lauterbrunnen won’t impose ban
Photo: Swiss Tourism
Six reasons Switzerland isn’t as boring as you might think
Photo: Swiss Tourism
Report: Switzerland one of world’s best places for girls
Photo: The Local
Thief returns Swiss cow bells worth thousands
File photo: Wikimedia Commons
One in three rapists isn’t locked up: statistics
Photo: activistin.ch
Tampon-tax protest turns Zurich fountains red
Photo: AFP
Geneva police to lift ban on bearded officers
Photo: Marcel Gillieron/AFP
Suicide chef’s restaurant keeps Michelin stars
Photo: Lara de Salis
11 things the Swiss get tired of hearing abroad
Photo:  Ivo Scholz/Swiss-image.ch
Survey: expats in Switzerland have money but few friends
Photo: AFP
Swiss press criticize Bern’s 'capitulation' on immigration
Photo: Jura Trois Lacs tourism
German ex-policeman is Swiss city’s new hermit
Photo: Dmitry A. Mottl
Ticino votes to favour local workers over foreigners
Photo: file
Some deodorants could cause breast cancer: Swiss study
Photo: Royal Savoy
In pictures: Inside the latest Swiss luxury hotel
Photo: AFP
Geneva airport bomb hoaxer faces 90,000-franc bill
Photo: Schaffhausen police
Mother leaves toddler son alone in car to go clubbing
Photo: Fabrice Coffrini/AFP
Swiss populist attacked by knife-wielding pensioner
Photo: File
Bern argues over passports for 3rd generation foreigners
Photo: Broad Bean Media
Muslim pupils must shake hands – ‘no ifs and buts’
jobs available