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A Closer Look at Novartis’s Innovative Medicines Segment

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Innovative Medicines

Novartis’s (NVS) Innovative Medicines segment includes prescription products from two business units: Novartis Pharmaceuticals and Novartis Oncology.

The Innovative Medicines segment reported revenue of $8.9 billion in the second quarter, a 10% YoY (year-over-year) rise in revenue.

The above chart compares the revenues of the Innovative Medicines segment since the first quarter of 2017.

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Pharmaceutical products

Novartis’s ophthalmology products reported revenue of ~$1.2 billion in the second quarter, a 1% fall driven by lower sales of products from the topical olopatadine group, the travoprost group, and others and partially offset by the strong sales of Lucentis.

The segment’s neuroscience products reported revenue of $889 million in the second quarter, a 3% rise driven by increased sales of the drug Gilenya.

Immunology, hepatology, and dermatology products reported total revenue of $833 million in the second quarter, a 41% rise driven by increased sales of the drugs Cosentyx and Ilaris.

Respiratory products reported revenue of $433 million in the second quarter, a 14% rise driven by increased sales of the drugs Seebri Breezhaler, Ultibro Breezhaler, Xolair, and other respiratory products.

Cardiometabolic products reported revenue of $245 million in the second quarter, a rise of over 100% driven by increased sales of Entresto and other products.

Established products reported revenue of $1.8 billion in the second quarter, a 1% fall in revenue.

Oncology products

Novartis’s oncology products reported revenue of $3.4 billion in the second quarter, a 12% rise driven by increased sales of Afinitor/Votubia, Promacta/Revolade, Tafinlar and Mekinist, Tasigna, Votrient, Exjade/Jadenu, Kisqali, Jakavi, and Kymriah.

The Invesco BLDRS Europe Select ADR ETF (ADRU) holds 6.5% in Novartis, 3.0% in Sanofi (SNY), 3.0% in AstraZeneca (AZN), and 2.9% in GlaxoSmithKline (GSK).

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