Novartis (Attractive*) has largely met or slightly exceeded expectations with its Q3 results (Revenue $14.35 Mrd., +4%, Profit $2.26 Mrd, -6%). Since the competition is weaker than expected from generics for Diovan, the company has increased its outlook.
This is not surprising since it was already known that the competition is struggling with delays, but certainly clearly positive. Novartis now expects sales growth at constant exchange rates in the low to mid single-digit percentage range (old: low single digits), and adjusted for special items, operating profit is expected to reach or exceed the previous year's level (old: decline in the low single digits). We confirm our rating for the stock.