BIG PHARMA EARNINGS WATCH: NOVARTIS
Brand Name Drug Company Beats Earnings Forecasts After Repeatedly Hiking Prices
New earnings reports for the second quarter of 2020 show that Big Pharma giants are continuing to rake in profits while hiking prescription drug prices.
On Tuesday, Big Pharma drug company Novartis announced it bested earnings forecasts for the second quarter after hiking prices on nearly 30 drugs earlier this year.
- Novartis’ Q2 net income rose to $3.11 billion and reported revenue was $11.35 billion.
- Novartis’ sales were largely driven by blockbuster skin and arthritis drug Cosentyx, heart drug Entresto and gene therapy drug Zolgensma.
- Cosentyx accounted for $944 million in sales for the company – up from $930 million in the previous quarter.
- Entresto contributed $580 million in sales – up from $569 million the previous quarter, and Zolgensma contributed $205 million in sales – up from $170 million in Q1.
Novartis’ earnings come as the company continues to hike prices on their prescription drugs despite a growing crisis of affordability.
- Novartis increased the price of chemotherapy treatment Jakafi earlier this month, during the height of the coronavirus pandemic.
- Novartis has increased prices on nearly 30 drugs already this year, including seven percent hikes each on blockbuster drugs Cosentyx and Entresto.
- Novartis increased prices at least 57 times in 2019 by an average of 6.3 percent.
- Novartis hiked the prices of Cosentyx and Entresto in 2019 by a staggering 10 percent each.
- At the same time, Zolgensma, a drug used to treat spinal muscular atrophy remains the world’s most expensive drug, at $2.13 million per patient.
Stay tuned this week as we continue to monitor Q2 earnings announcements from brand name drug companies.