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Novartis Raises Full Year Outlook on Generic Delays (NVS)

Novartis (NYSE: NVS) announced that it raised its full-year outlook Wednesday after it announced that generic competition to its blood pressure drug, Diovan, was having trouble receiving approval for production of a generic equivalent.

“This is good news, but only short term, as the sales impact is merely delayed into 2014,” said analyst David Kaegi of J.Safra Sarasin bank.

The Swiss pharmaceutical company said that it sees full year sales growing at a rate in the low single digits. The delay is good news for the company that is counting on new product launches to offset Diovan that has already gone off patent and its leukemia drug Gleevec which goes off patent in the U.S. in 2015.

New drugs in the pipeline include Gilenya for multiple sclerosis and its cancer drug, Afinitor.

[stock-tools exchange="NYSE" symbol="NVS" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.


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