Novartis tightens outlook as second-quarter sales, profit fall

ZURICH (Reuters) – Swiss drugmaker Novartis lowered its 2020 sales outlook on Tuesday after second quarter sales and profit fell, as hospitals that stocked up on medicines during the first-quarter due to the COVID-19 pandemic slowed purchases.

Net income in the three months through June fell 4% to $1.9 billion, compared to $2.1 billion in 2019. Sales fell 1% in constant currencies to $11.35 billion, from $11.8 billion.

The Basel-based company cut its 2020 sales outlook, saying it now expects sales to grow in the mid-single digit percentage range, down from its previous expectation for a mid- to high-single-digit percentage increase.

Novartis was also more specific on its profit expectations, saying it now expected core operating income to increase by a low double-digit percentage, compared with its earlier view for a high-single to low-double-digit percentage increase.

(Reporting by John Miller, editing by John Revill)