Novartis misses earnings as generic rivals hit Entresto
Novartis reported first-quarter profit below forecasts as generic rivals cut U.S. Entresto sales by 42 percent. The firm is now seeking growth via acquisitions.
NOVARTIS AG-REG reported a 12% drop in core operating income to $4.9 billion for the first quarter. Revenue of $13.11 billion missed analyst expectations of $13.4 billion as generic competition eroded sales of heart drug Entresto. Investors are tracking the drugmaker's ability to replace $4 billion in projected annual revenue losses through new acquisitions.
### Why Generic Competition Is Squeezing Margins Sales of Entresto fell 42% to $1.31 billion in the United States following patent expirations. This figure came in below the $1.37 billion forecast by Visible Alpha analysts. The drug accounted for 14% of total revenue for Switzerland-based Novartis last year.
