Benzinga | Oct 26, 2021 07:19AM EDT

Novartis Mulls Strategic Options For Sandoz, Reaffirms FY21 Outlook

* Novartis AG (NYSE:NVS) reported that its Q3 net income climbed 43% to $2.76 billion. EPS reached $1.23, up 45% Y/Y.

* Earnings: The Company posted a core EPS of $1.71, well ahead of the consensus of $1.65.

* Sales rose 6% to $13.03 billion, in line with Wall Street expectations driven by higher sales of arthritis and psoriasis drug Cosentyx and heart failure treatment Entresto. Volume contributed 9% points to sales growth.

* Novartis increased its peak sales guidance for Cosentyx to at least $7 billion from a goal of at least $5 billion previously and for Entresto to at least $5 billion, from at least $4 billion. Q3 adjusted operating profit rose 10% to $4.47 billion.

* Regarding its generics division Sandoz, the Company said that it had commenced a strategic review that will explore all options, ranging from retaining the business to separation.

* Sandoz declined -2% (cc, -1% USD), affected by continued pricing pressures. Ex-US sales grew +3% (cc).

* Novartis added it would have more to say on that review by the end of next year.

* Outlook: Novartis also stuck to its forecast, saying this year's sales will grow by a low- to mid-single-digit percentage, while earnings excluding some items increase by a mid-single-digit percentage.

* See the Q3 Interim Report here.

* Price Action: NVS shares traded higher 1.82% at $84.88 premarket on the last check Tuesday.