Does Novartis See Much Potential for Its Surgical Business?
In 2017, Novartis (NVS) has planned to conduct a review of its Alcon segment to evaluate the business’s growth potential.
Novartis (NVS) expects its Alcon business to report low-single-digit revenue growth in 2017.
Novartis (NVS) has managed to secure reimbursement in 17 countries in Europe.
Novartis’s (NVS) heart failure drug, Entresto, has been witnessing a steep rise in both new to brand prescriptions as well as total prescriptions in the US market.
In 2017, Novartis (NVS) expects its heart failure drug, Entresto, to earn revenues in excess of $500 million.
Compared to 43% at the end of 2015, Novartis’s (NVS) Entresto managed to attain a preferred formulary position in 66% of commercial plans in the US at the end of 2016.
Novartis (NVS) expects modest prescription growth for its heart failure drug, Entresto, in 1Q17.
If Novartis manages to further improve access to Entresto in 2017, it could have a favorable impact on the company’s stock and the Vanguard International Dividend Appreciation ETF (VIGI).
By the end of 2016, the number of Cosentyx’s new-to-brand prescriptions in the US for PsA and AS indications were higher than those of Amgen’s Enbrel, Johnson & Johnson’s Stelara, and AbbVie’s Humira.
In 2016, Novartis’s (NVS) Cosentyx surpassed its closest competitor, Eli Lilly’s (LLY) Taltz, in number of total weekly prescriptions in the US market.
To boost its total net profit margins, Novartis (NVS) has been reducing expenses by capturing cross-divisional synergies.
Launched in the US in 1Q15, Novartis’s (NVS) Cosentyx managed to report revenues of around $1,128 million in 2016.
While patent expiries had a negative impact on Novartis’s (NVS) revenues, the solid launch of Cosentyx partially offset the negative effect.
In 2016, Novartis (NVS) reported revenues of $48.4 billion, a flat year-over-year (or YoY) performance on a constant currency basis.
Due to the failure of the new healthcare bill, major pharmaceutical companies witnessed a fall in their share prices from March 23, 2017, to March 27, 2017.
The healthcare bill’s failure had a negative impact on investor sentiment for health insurance carriers.
Trumpcare’s failure is considered to be a boon by hospital companies treating a significant portion of Medicaid members.
On March 24, 2017, House Speaker Paul Ryan pulled back the American Health Care Act, also known as “Trumpcare,” before votes were cast.
GlaxoSmithKline (GSK) is estimated to report EPS of 111.01 pence on revenues of ~30.0 billion pounds in 2017, 7.6% growth compared to 2016 revenues.
GSK’s Vaccines business reported growth of 14% to ~4.6 billion pounds in 2016.