(Bloomberg) -- Novartis AG’s second-quarter earnings declined 3 percent as the company grapples with tumbling sales of its cancer medicine Gleevec and invests in new products like heart drug Entresto and Cosentyx for psoriasis.
Profit fell to $1.23 a share, excluding some items, the Basel, Switzerland-based company said Tuesday in a statement. Analysts estimated $1.19, according to data compiled by Bloomberg. Revenue dropped 2 percent to $12.5 billion, compared with analysts’ average forecast of $12.2 billion.
Novartis is depending on Entresto and Cosentyx as its blockbuster Gleevec faces generic competition in the U.S. and sales at its eye-care division Alcon slump. Entresto, projected by the company to eventually hit peak sales of $5 billion a year, has received a warmer reception in Europe than the U.S., the largest market for pharmaceuticals, since its introduction a year ago.
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