Novartis (NVS) reported revenues of ~$12.9 billion in 4Q17, representing 5.0% growth in revenues compared to ~$12.3 billion in 4Q16. For fiscal 2017, Novartis reported revenues of ~$49.1 billion, reflecting 1.0% growth in revenues compared to ~$48.5 billion in 2016.
The chart below compares the company’s segment-wise revenues since 1Q16.
Novartis (NVS) classifies its business into three segments:
- Innovative Medicines: including the Prescription Medicines business
- Sandoz: the Generic Pharmaceuticals business
- Alcon: the Eye Care business
The company’s Innovative Medicines segment includes products from two business units: Novartis Pharmaceuticals and Novartis Oncology. The Innovative Medicines segment reported 6.0% growth in revenues to ~$8.8 billion in 4Q17 compared to ~$8.3 billion in 4Q16.
These revenues were driven by 9.0% growth in volumes. The generic competition had a 4.0% negative impact on its growth due to lower sales of Gleevec/Glivec in the US and European markets.
Sandoz, the Generic Pharmaceuticals business of Novartis, reported nearly flat revenues at $2.6 billion in 4Q17 compared to 4Q16. This includes a 4.0% decline in operating revenues, offset by a 4.0% positive impact of foreign exchange.
Alcon, the Eye Care division, reported 8.0% growth in revenues to ~$1.6 billion in 4Q17, compared to revenues of ~$1.4 billion in 4Q16. This includes ~6.0% growth in operating revenues and a 2.0% positive impact of foreign exchange.
The BLDRS Europe Select ADR ETF (ADRU) holds 21.2% of its total investments in healthcare companies. ADRU holds 6.6% in Novartis AG ADR (NVS), 2.8% in Novo Nordisk ADR (NVO), 2.5% in GlaxoSmithKline ADR (GSK), and 2.4% in AstraZeneca Plc ADR (AZN).