The coronavirus remains engraved in the balance sheet of several companies for the first quarter of 2020. Indeed, many of them have reported significantly lower sales as a result of the containment measures adopted around the world. Others find themselves obliged to reduce or cancel their targets. On the other hand, it is rejoicing for others who are publishing rising sales figures in this period of crisis. This is the case for the Swiss group Novartis. Somewhere therefore, it is quite clear that the health crisis linked to Covid-19 is not only having negative effects on companies. The analysis suggests the sector of activity in which a firm operates. As a result, the Swiss pharmaceutical group Norvatis remains out of reach for the first quarter of 2020.Trade in Novartis shares!
In a press release issued on Tuesday, the Swiss pharmaceutical giant reported an increase in sales. The statistics speak for themselves. Against all expectations, Norvatis' first quarter balance sheet surprises with a turnover of 11% or $12.28 billion. Whereas the first quarter 2019, the group had recorded a turnover of 11.1 billion dollars.
The group's net income (NR) stands at $2.2 billion, a rate of +16% compared to the previous year. Core revenue increased by $3.55 billion.
This growth is the result of the strong demand for drugs observed during this quarter. Indeed, the company's customers anticipated the purchase of drugs to face the pandemic.
The Swiss giant Novartis is pleased with its outstanding performance and the stability of its activities across its various divisions. Chief Executive Officer Vasant Narashimhan says the Group will maintain its outlook for this year. However, he remains open to the possibility of a return to the norm for global health systems in the second quarter. The giant Novartis defies the constraints imposed by the coronavirus pandemic.
With such an achieved performance, the Swiss pharmaceutical specialist is projecting further achievements in the course of this year. This is an increase in sales in the wake of the 5 to 9 % increase in sales and a basic operating surplus of + 10 %. In addition, Norvatis expects sales growth in the range of 1 to 5% for the second quarter of 2020.
The Novartis group in concert with the Swiss company Mepha is helping the Swiss government. Indeed, these giants have donated about ten thousand doses of chloroquine to the Swiss government. They will be used to treat coronavirus patients.
In addition, the group has entered into a commitment with Roche to test existing treatments to alleviate the effects of Covid-19 on sufferers. Roche has promised to deliver tests to detect this pandemic.
The Swiss company Novartis was founded on December 17, 1996. It results from the merger between Ciba-Geigy and Sandoz. It is specialized in the pharmaceutical industry with its Sandoz subsidiaries working on generics and biosimilars. The Novartis share rose by 0.55% on Tuesday on the Zurich stock exchange.