As expected, Novartis has delivered a mixed set of quarterly figures this morning. Total revenues stood at USD14.338bn up 6% in constant currencies, driven by a decent performance in Pharma and for Alcon, good growth at Sandoz and an ongoing recovery in Consumer Healthcare. Currencies dented the reported growth rate by 2pp. Note the healthy performance in emerging markets (+9%) including China (+18%). Core operating margin was not so good, narrowing by 230bp with a clear decrease for both Pharma (very high R&D expenses) and Alcon, also under pressure from currencies. Since generic Diovan monotherapy is still out of the radar screen, full-year guidance has again been increased, this time crossing into positive territory for Core operating profit.
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