How Novartis’s Alcon Performed in Third Quarter

Alcon

Alcon, the eye care business of Novartis AG (NVS), includes surgical products and vision care products. Alcon reported revenues of ~$1.76 billion during the third quarter of 2018, a 3% increase in year-over-year (or YoY) revenues as compared to ~$1.71 billion in the third quarter of 2017. The growth was driven by a 5% growth in operating revenues, offset by a 2% negative impact of foreign exchange.

How Novartis’s Alcon Performed in Third Quarter

The above chart looks at the revenue trend for Alcon since the first quarter of 2017.

Product performance

At constant exchange rates, the surgical franchise revenues increased by ~7% during the third quarter of 2018, while the vision care franchise revenues increased by 3% during the quarter.

Surgical sales

Surgical sales reported 5% growth in YoY revenues to ~$966 million during the third quarter of 2018 compared to revenues of $924 million during the third quarter of 2017. The revenues from consumables increased 4% to $529 million during the third quarter of 2018 as compared to $509 million during the third quarter of 2017. The revenues from implants increased by 6% to $269 million during the third quarter of 2018 as compared to $254 million during the third quarter of 2017. The revenues from sales of equipment and other products increased by 4% to $168 million during the third quarter of 2018 compared to $161 million during the third quarter of 2017.

Vision care

The vision care franchise reported 1% growth in YoY revenues to ~$797 million during the third quarter of 2018 as compared to revenues of $788 million during the third quarter of 2017. The revenues from contact lenses increased 2% to $491 million during the third quarter of 2018 as compared to $481 million during the third quarter of 2017. The ocular health franchise includes revenues from contact lens care, dry eye, and other ophthalmic over-the-counter products. The ocular health franchise reported flat revenues at $306 million during the third quarter of 2018.

The Invesco BLDRS Developed Markets 100 ADR ETF (ADRD) holds 5.7% in Novartis (NVS), 0.5% in Teva Pharmaceuticals (TEVA), 2.0% in Novo Nordisk (NVO), and 2.5% in AstraZeneca (AZN).