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Novartis profit drops on Swiss franc, emerging markets

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Bloomberg
Last Updated : Jan 30 2014 | 12:33 AM IST
Novartis AG, Europe's biggest drugmaker by sales, said fourth-quarter profit fell as currencies in emerging markets weakened against the dollar.

Products introduced since 2008, or which have patents extending to 2017, accounted for 40 percent of pharmaceutical sales in the quarter, up from 33 per cent a year earlier.

Fourth-quarter earnings excluding some items fell 3 per cent to $2.96 billion, or $1.20 a share, from $3.04 billion, or $1.24, a year earlier, the company said. Novartis, which is based in Basel, Switzerland, and reports earnings in dollars, also was hurt by a strong Swiss franc. Analysts predicted profit of $1.21 a share, according to the average estimate compiled by Bloomberg.

Novartis rose 0.6 per cent to 71.70 Swiss francs at 9:35 am in Zurich on Wednesday. The stock returned 18 per cent including reinvested dividends in the year through Tuesday, compared with a 21 per cent return for the Bloomberg Europe Pharmaceutical Index.

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First Published: Jan 30 2014 | 12:19 AM IST

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