Updated June 22, 2016.
Novartis’s (NVS) net revenues have fallen by over 5% to $49.4 billion in 2015 as compared to $52.4 billion in 2014. The contribution of the Pharmaceuticals segment rose by 1% to $30.5 billion. On the other hand, the contribution of the eye care division, Alcon, fell by ~0.9% to $9.8 billion and the contribution of the generics division Sandoz rose by 0.3% to $9.2 billion in 2015. The company also reported revenues for discontinued operations, which include the company’s vaccines business, animal health business, and OTC business.
Since 2014, the company has changed its structure from six divisions to three divisions as follows:
- Pharmaceuticals: patented drug division
- Alcon: the eye care division
- Sandoz: the generic division
Factors affecting revenues
Major factors that accounted for the decrease in revenues were as follows:
- The company discontinued operations including the vaccines business, animal health business, and OTC business.
- In pharmaceuticals, the drugs Lucentis, Diovin, Exforge, Galvus, and Exelon have shown negative growth in revenues during 2015. These drugs are among the top revenue contributors of the pharmaceuticals division. The total revenues for the pharmaceuticals division fell by 4% in 2015. At constant exchange rates, the revenues for the pharmaceuticals division rose by 6% in 2015.
- The revenues for Alcon, the eye care division, fell by 9% in 2015. At constant exchange rates, the revenues for Alcon fell by 1% in 2015.
- The revenues for Sandoz, the generic arm of Novartis, fell by 4% in 2015. At constant exchange rates, the revenues for Sandoz rose by 7% in 2015.