Novartis says may divest generic drugs unit Sandoz

Third-quarter operating profit, adjusted for special items, rose 10% to $4.47 billion, driven by higher sales of arthritis and psoriasis drug Cosentyx

Novartis on Tuesday raised the prospect of divesting its generic drugs unit Sandoz and lifted its peak revenue estimate for its two best-selling pharmaceuticals.

"Novartis has commenced a strategic review of the Sandoz Division. The review will explore all options, ranging from retaining the business to separation, in order to determine how to best maximize value for our shareholders," the Swiss pharma major said in statement on quarterly results.

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

Third-quarter operating profit, adjusted for special items, rose 10 per cent to $4.47 billion, driven by higher sales of arthritis and psoriasis drug Cosentyx and heart failure treatment Entresto.

It increased its peak sales guidance for Cosentyx to at least $7 billion and for Entresto to at least $5 billion.

Third-quarter sales rose 6 per cent to $13.03 billion, in line with the average analyst estimate compiled by Refinitiv, while core net income increased 10 per cent to $3.83 billion versus market consensus of $3.7 billion.

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