ZURICH/LONDON, Oct 27 (Reuters) – Novartis raised its full-year core operating income guidance on Tuesday but also booked a $1.9 billion partial impairment charge related to a pipeline setback in September.
The Swiss drugmaker now expects core operating income to grow by a low single-digit percentage compared with the low single-digit decline previously expected. It maintained its forecast for low single-digit net sales growth.
In the third quarter, core operating income increased 10% at constant exchange rates thanks to higher net sales, the Basel-based company said.
Reported operating income, the non-adjusted figure, declined 61%, which Novartis attributed to higher research and development costs and a $1.9 billion partial impairment charge for del-desiran, one of two consecutive major trial setbacks unveiled in September that sent shares tumbling.
The drug, which was being tested for myotonic dystrophy, a muscle-wasting disease with no approved treatments, was obtained through Novartis’ $12 billion acquisition of Avidity.
(Reporting by Marleen Kaesebier, Bhanvi Satija and Patricia Weiss, Editing by Friederike Heine and Thomas Derpinghaus)
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