Strong US dollar hurts Swiss pharmaceutical company Novartis with 32-percent drop in Q2 profit

Markets Associated Press

Swiss-based pharmaceutical company Novartis says second-quarter net income dropped 32 percent over the same quarter last year, brought down primarily by poor performance from associated companies and negative effects of a strong U.S. dollar.

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Second-quarter net income was $1.856 billion, down from $2.723 billion in the same quarter in 2014. Net sales were down 5 percent to $12.694 billion.

Nevertheless, CEO Joseph Jimenez said Tuesday that the company had a strong quarter for innovation with the U.S. approval of two new drug products, and confirmed its full-year guidance. Group sales are expected to grow by mid-single digits and operating income is expected to grow ahead of sales at a high-single-digit rate.

Jimenez says, "we are confident we will deliver on our priorities for the year."