Novartis Reports Strong Q2 Results, Raises Full-Year Profit Guidance, and Files Sandoz Spin-off Prospectus for Q4 Listing

According to the Zhijing APP, Novartis AG (NVS.US) raised its full-year profit guidance on Tuesday due to strong drug sales and plans to spin off and list its generics unit, Sandoz, in the fourth quarter.

Data shows that Novartis' net sales in the second quarter were $13.622 billion, a year-on-year increase of 7%, surpassing market expectations; net profit was $2.317 billion, a year-on-year increase of 37%; core operating profit was $4.668 billion, a year-on-year increase of 9%; core earnings per share were $1.83, a year-on-year increase of 17%, also surpassing market expectations.

Sandoz net sales were USD 2.4 billion, increasing 5% year-on-year; core operating profit decreased 5% year-on-year.

This Swiss pharmaceutical company stated that it expects the group's core operating profit to grow by a low double-digit percentage in 2023, which is higher than the previously forecasted high single-digit growth.

Novartis AG shareholders will vote on the proposed spin-off of Sandoz at an extraordinary general meeting to be held on September 15.

Novartis added that Sandoz will be listed on the Swiss Stock Exchange at the beginning of the fourth quarter and launch American Depositary Receipts in the United States.

Novartis also announced plans to repurchase up to $15 billion of its shares by the end of 2025.