– The Swiss pharmaceutical company Novartis tripled its profit in 2021 to $24.02 billion thanks to the sale of its multi-billion dollar Roche stake and plans to raise the dividend to CHF 3.10 per share. For 2022, the Basel-based company forecast sales growth and an increase in operating profit adjusted for special items by a mid-single-digit percentage on Wednesday. “Our market growth drivers continue to perform well in all regions and strengthen our confidence in our medium to long-term growth prospects,” said CEO Vasant Narasimhan.
There was nothing new about the strategic review of the generics subsidiary Sandoz. A decision should be made by the end of the year, with all options on the table – from remaining in the group to a separation. There is currently no trend towards one of the options, said the Novartis boss. The group put Sandoz to the test in October. Analysts assume that Novartis will sell the division or take it public. With almost ten billion dollars, Sandoz accounts for a fifth of Novartis sales, but lags behind the dominant business with patent-protected drugs in terms of profitability.
Last year, group sales rose 6 percent to $51.63 billion. Adjusted operating profit rose eight percent to $16.59 billion. Novartis thus met its own requirements. After the restrictions to contain the coronavirus pandemic were eased in many countries, business with cancer drugs, for example, picked up speed in the second half of the year. In addition, healthcare operations returned to normal after patients were reluctant to visit the doctor and undergo surgery at the beginning of the year and hospitals had ordered fewer.
The engines of growth were the drug Cosentyx for psoriasis – the top-selling drug with sales of 4.72 billion dollars – and the heart drug Entresto. Novartis had recently raised the sales forecast for the two drugs. Zolgensma gene therapy for the treatment of muscle wasting contributed 1.35 billion in sales revenue thanks to expanded access in Europe and emerging markets. The most expensive drug in the world, costing a good two million dollars per single dose, is used to treat the hereditary disease spinal muscular atrophy (SMA) in young children, which is usually fatal.
Novartis had sold its package of Roche bearer shares to its arch-rival at the end of last year. The company intends to pay out most of the proceeds of $21 billion to its shareholders through a share buyback.