Novartis Annual Report 2016
Novartis Annual Report 2016 ----- Novartis delivered solid results in 2016. Net sales for Novartis in 2016 were USD 48.5 billion, down 2% in reported terms, but flat measured in constant currencies (cc) to remove the impact of fluctuations in exchange rates. While volumes grew 6 percentage points, that was offset by the negative impacts of 4 percentage points due to generic competition and 2 percentage points from lower prices. We continued to face headwinds in 2016 from currency fluctuations, with the rising value of the dollar adversely affecting our reported sales and income. This continues a trend we have seen for several years, particularly in 2015 when currency fluctuations had a negative 10% impact on sales.
To help investors assess the impact of exchange rates on our performance, we also indicate growth rates in constant currencies. In 2016, our growth products contributed USD 17.1 billion, or 35% of net sales. These include Gilenya for multiple sclerosis, up 14% (cc) to USD 3.1 billion; Cosentyx for psoriasis and two other immune-related illnesses, which reached blockbuster status with sales of USD 1.1 billion; Jakavi for blood cancer, up 45% to USD 581 million; and the combination cancer therapy Tafinlar + Mekinist, acquired from GSK during 2015 (USD 672 million). Biopharmaceutical products from Sandoz also continued to be a bright spot, rising 31% (cc) to USD 1.0 billion. Sales of heart failure drug Entresto grew steadily during the year and totaled USD 170 million. We continued to increase our investment in its launch, devoting additional resources during the year to educating doctors and patients about its benefits. Operating income in 2016 was USD 8.3 billion (-8%, -3% cc), down mainly due to the effects of patent expirations and increased investments related to new product launches, including Entresto and Consentyx, and the Alcon growth plan. For a more in depth look at Novartis Annual Report for 2016 click on the picture below to read more.