Swiss drug maker Novartis AG (NVS: Quote) posted higher fourth-quarter net income of $2.08 billion, or $0.84 per share, compared with last year’s $1.21 billion, or $0.49 per share. In the recent quarter, core net income grew to $3.10 billion, or $1.27 per share, from $3.01 billion, or $1.23 per share a year before.
Net sales for the three-month period reached $14.83 billion, versus $14.78 billion in the prior-year period.
On average, 3 analysts polled by Thomson Reuters expected earnings per share of $1.19 on $14.42 billion for the quarter. Analysts’ estimates typically exclude one-time items.
Going forward, the company sees 2013 sales to be in line with 2012 in constant currencies, after absorbing impact of generic competition which could amount to as much as $3.5 billion. Full-year core operating income is expected to decline in mid-single digits.
Novartis believes that the next growth phase would begin in 2013, resulting in 2014 and 2015 expected reported sales growth of at least mid-single digits, with core operating income growing ahead of sales.
Having served in leadership roles as Chief Executive and Chairman of Novartis for 17 years, Daniel Vasella has decided not to stand for re-election at the upcoming Annual General Meeting or AGM on February 22, 2013. Jörg Reinhardt is nominated as the new Director of Novartis AG and designated non-executive Chairman of the board, effective as of August 1, 2013. During the transition period, current Vice-Chairman Prof. Ulrich Lehner would lead the board on an ad interim basis.
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by RTT Staff Writer
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