uploads///Established Medicines

How Did Novartis’s Established Medicines Perform in 1H17?

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Sep. 21 2017, Updated 9:36 a.m. ET

Galvus revenue trends

In 1H17, Novartis’s (NVS) Galvus generated revenues of around $596 million compared to $589 million in 1H16. In 2Q17, Galvus generated revenues of around $310 million, which reflected ~1% growth on a year-over-year (or YoY) basis and ~8% growth on a quarter-over-quarter basis. Galvus is used for the treatment of individuals with type two diabetes mellitus.

The chart above represents the revenue curve of Novartis’s Established Medicines from 2Q16 to 2Q17.

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Diovan/Co-Diovan revenue trends

In 1H17, Diovan earned revenues of around $482 million, which is a ~13% decline on a YoY basis. In 2Q17, Diovan generated revenues of around $240 million, which reflected a ~15% decline on a YoY basis and a 1% decline on a quarter-over-quarter basis. Diovan is an angiotensin II receptor blocker (or ARB) used for the treatment of hypertension. Diovan is also indicated for the treatment of heart failure.

Exforge revenue trends

In 1H17, Exforge reported revenues of around $467 million, which reflected ~2% growth on a YoY basis. In 2Q17, Exforge generated revenues of around $239 million, which is ~1% growth on a YoY basis and ~5% growth on a quarter-over-quarter basis. Exforge is a combination of amlodipine and valsartan. The drug is used for the treatment of hypertension.

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Voltaren/Cataflam revenue trends

In 1H17, Voltaren reported revenues of around $228 million, which reflected a ~12% decline on a YoY basis. In 2Q17, Voltaren generated revenues of around $109 million, which is a ~19% decline on a YoY basis and an ~8% decline on a quarter-over-quarter basis. Voltaren (diclofenac) is used for the treatment of mild to moderate pain.

Exelon/Exelon Patch revenue trends

In 1H17, Exelon reported revenues of around $198 million, which reflected a ~12% decline on a year-over-year basis. In 2Q17, Exforge generated revenues of around $101 million, which is an ~8% decline on a YoY basis and ~4% growth on a quarter-over-quarter basis. The Exelon patch is used for the treatment of mild, moderate, and severe dementia associated with Alzheimer’s disease.

Ritalin/Focalin revenue trends

In 1H17, Ritalin/Focalin reported revenues of around $118 million, which reflected a ~20% decline on a YoY basis. In 2Q17, Ritalin generated revenues of around $61 million, which is a ~21% decline on a YoY basis and ~7% growth on a quarter-over-quarter basis. Ritalin (methylphenidate) is used for the treatment of attention deficit disorder.

Novartis’s peers in the cardiovascular drug market include AstraZeneca (AZN), Sanofi (SNY), Merck (MRK), Pfizer, Bayer, Takeda Pharmaceuticals, and others. The Vanguard FTSE All-World ex-US ETF (VEU) has ~0.82% of its total portfolio holdings in Novartis.

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