Alcon, the eye care business of Novartis AG (NVS), is segregated into two sub-segments: surgical products and vision care products. Last year, Novartis transferred its ophthalmic pharmaceuticals portfolio to its Innovative Medicines segment from the Alcon segment.

Alcon reported revenues of $1.52 billion for 2Q17, which was 1% higher YoY (year-over-year) than the $1.51 billion we saw in 2Q16.

How Novartis’s Alcon Eye Care Business Performed in 2Q17

For 2Q17, this segment’s revenues reported 3% YoY growth at constant exchange rates, partially offset by a 2% YoY fall due to foreign exchange.

Alcon’s 2Q17 performance

Alcon’s surgical franchise reported 3% growth in revenues at constant exchange rates, while the vision care franchise reported 4% growth in revenues at constant exchange rates for 2Q17.

Geographically, this segment reported operational growth in Asia, emerging markets, and Japan, while operating revenues were flat in Europe, the Middle East, and Africa. However, the North American region reported a decline in operating revenues for 2Q17, due to lower sales of weekly and monthly contact lens products.

Surgical sales

Surgical sales reported a 3% growth in operating revenues during 2Q17, driven by increased sales of cataract consumable products, vitreoretinal lenses, and intraocular lenses globally.

Vision care

The vision care franchise reported 2% growth in operating revenues for 2Q17, driven by increased sales of Dailies Total-1 products and increased sales from the daily contact lens portfolio.

To divest company-specific risks, investors can consider ETFs like the Vanguard FTSE All-World Ex-US ETF (VEU), which has 0.9% of its total assets in Novartis (NVS). VEU also has 0.5% in Sanofi (SNY), 0.5% in GlaxoSmithKline (GSK), and 0.4% in AstraZeneca (AZN).

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