How Novartis’s Innovative Medicines Business Performed in Q3

Innovative medicines business

Novartis’s (NVS) Innovative Medicines business includes prescription products from two business units: Novartis Pharmaceuticals and Novartis Oncology. The Innovative Medicines business contributed over 67.2% of the total revenues for Novartis and saw 6% growth in year-over-year (or YoY) revenues to ~$8.6 billion during the third quarter of 2018.

How Novartis’s Innovative Medicines Business Performed in Q3

The above chart compares the revenues for Innovative Medicines segment and total revenues for Novartis since the first quarter of 2017.

Product performance

Oncology products reported a 7% increase in revenues to $3.3 billion during the third quarter of 2018 driven by strong sales of Promacta/Revolade, Tafinlar and Mekinist, Jakavi, and Kisqali sales, and new products Kymriah and Lutathera. The growth was offset by lower sales of Tasigna, Gleevec/Glivec, Sandostatin, Afinitor/Votubia, and Votrient.

Immunology, Hepatology, and Dermatology products reported a 34% increase in revenues to $891 million during the third quarter of 2018 due to strong sales of Cosentyx and Ilaris.

Neuroscience products reported 1% growth in revenues to $838 million during the third quarter of 2018 driven by strong sales of Gilenya, offset by lower sales of other products.

The respiratory products reported 3% growth in revenues to $429 million during the third quarter of 2018, driven by strong sales of Ultibro Breezhaler, Xolair, and other respiratory products, partially offset by lower sales of Seebri Breezhaler and Onbrez Breezhaler.

Cardio-metabolic products reported over 100% growth in revenues to $277 million during the third quarter of 2018 driven by the strong performance of Entresto and other products.

Ophthalmology products reported a 4% decrease in revenues to ~$1.1 billion during the third quarter of 2018, driven by lower sales of Travoprost Group and other products, partially offset by strong sales of the Topical Olopatadine group and Lucentis. Established products reported a 4% decline in revenues to $1.76 billion during the third quarter of 2018.

The Invesco BLDRS Europe Select ADR ETF (ADRU) holds 6.7% in Novartis (NVS), 3.0% in GlaxoSmithKline (GSK), 2.4% in Novo Nordisk (NVO), and 0.6% in Teva Pharmaceuticals (TEVA).