Innovative Medicines business
Novartis’s (NVS) Innovative Medicines business comprises two units—Novartis Pharmaceuticals and Novartis Oncology. The Innovative Medicines segment includes products from therapeutic categories such as Neuroscience, Oncology, Immunology, Respiratory, Dermatology, Cardiovascular and Metabolics, and Established Products.
The chart above compares the revenues for the Innovative Medicines segment since 1Q16. Innovative Medicines contributed ~67.8% of the total revenues for Novartis, reporting revenues of ~$8.8 billion in 4Q17 and reflecting 6.0% growth compared to ~$8.3 billion in 4Q16.
Performance of the Innovative Medicines segment
Novartis’s (NVS) Innovative Medicines business reported 4.0% growth in operating revenues, while there was a 2.0% positive impact of foreign exchange in 4Q17.
The growth for its 4Q17 revenues was driven by increased sales of products in the areas of oncology, ophthalmology, immunology and dermatology, neuroscience, respiratory, and cardio-metabolic. These revenues were partially offset by lower sales in the Established Medicines categories.
Growth for Oncology products was driven by increased sales of Tasigna, Sandostatin, Afinitor/Votubia, Exjade/Jadenu, Tafinlar and Mekinist, Promacta/Revolade, Votrient, Jakavi, and Kisqali. This growth was substantially offset by lower sales of Gleevec/Glivec and other oncology products.
Growth for Ophthalmology products was driven by increased sales of Lucentis, Systane group, and the Topical Olopatadine group. This growth was partially offset by lower sales of the Travoprost group and other products.
Growth for Immunology and Dermatology products was driven by Cosentyx, Zortess/Certican, Ilaris, and Myfortic. This growth was partially offset by lower sales of Neoral/Sandimmun(e) and other products.
Growth for Neuroscience products was driven by Gilenya and offset by lower sales of other products.
Growth for Respiratory products was driven by Ultibro Breezhaler, Seebri Breezhaler, and Xolair. This growth was partially offset by lower sales of Onbrez Breezhaler and other products.
Growth for Cardio-Metabolic products was driven by Entresto and other products.
Revenues for Established Products declined due to lower sales of Diovan/Co-Diovan, Voltaren/Cataflam, Exelon/Exelon patch, and other products. These revenues were partially offset by growth in Galvus, Exforge, and Ritalin/Focalin sales.