Sunday, October 24, 2010

Novartis AG Beats Estimates

Q3 earnings for Novartis have increased, beating both analyst expectations and management’s forecast. Novartis reported $2.3 billion in net income this quarter, or 99 cents per share. Income rose to $2.3 billion from 2.1 billion in Q3 2009, representing an increase of 10 percent. Core earnings per share rose by 16 percent to $1.36 per share, beating analyst expectations of $1.29 per share.

New drugs Afinitor and Gilenya, along with the acquisition of Alcon, helped boost sales 13 percent. Novartis acquired part of Alcon, an eye-care product company, in 2008, and strong Q3 results may help them in their plan to buy out the rest of the company. Novartis is currently offering 2.8 shares per share of Alcon, and any boost in share price will make the offer more attractive.

~Ryan Kennedy

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