April 28 (Reuters) - Swiss drugmaker Novartis
reported first-quarter core operating profit below market
expectations on Tuesday, as generic competition for its
top-selling heart drug Entresto weighed on sales.
Quarterly group operating income, adjusted for special
items, declined 12% to $4.9 billion, below average analyst
expectations of about $5.1 billion cited by Visible Alpha.
Novartis is navigating what CEO Vas Narasimhan has
described as the drugmaker's largest patent expiry in the last
two decades, including for Entresto, which made up 14% of its
total net sales last year.
Entresto saw first-quarter sales drop 42% after its U.S.
patents expired and competing generics were launched. Entresto
faces patent expiries in Europe starting November.
Blood disorder drug Promacta and leukemia treatment
Tasigna also face competition from generics, increasing the
pressure on Novartis to deliver sales growth from newer drugs.
The Swiss group has said it expects its sales to decline by
$4 billion this year due to competition from generics for
Entresto and the other two drugs.
The Basel-based company also confirmed its full-year
forecast of a low single-digit percentage core operating income
drop, excluding currency swings.