Baxalta raises outlook
The company recently spun-out of Baxter reported a higher than expected result for the third quarter and raised its full-year forecast.
The company, whose portfolio features therapies for the treatment of haemophilia and immune deficiencies, reported a 7.2 per cent rise in revenue to US$1.6 billion compared to the corresponding period last year. Excluding the impact of foreign currency, revenue rose 16 per cent.
For the full year, Baxalta raised its guidance for revenue growth, on a constant-currency basis, to 8 per cent, from its previous range of 6-7 per cent.
Baxalta has attracted interest from Shire, with the Dublin-based company making an unsolicited US$30.6 billion bid for the company. Baxalta has rebuffed the offer.
The company's haematology business reported a 10 per cent increase in revenue on a constant currency basis for the third quarter to US$935 million, while revenue from its immunology business grew 13 per cent to US$626 million.
“We are already delivering on our promise to patients and shareholders in the short time that we have been an independent, standalone company,” said CEO and president, Ludwig Hantson. “Baxalta’s strong financial performance, increasing depth and breadth across the portfolio and meaningful pipeline achievements all validate our company’s compelling growth prospects, vision and commitment to driving shareholder value.”
Acquisitions and pharmaceuticals boost Bayer
Bayer reported earnings growth of 28 per cent for the third quarter, attributing the strong performance to recently launched pharmaceutical products and the positive benefits of its expanded portfolio of consumer health products.
Combined sales from the company's divisions grew by 10.7 per cent to US$12.149 billion, up from US$10.972 billion for the corresponding period last year.
Earnings before special items of US$2.777 billion were up almost 28 per cent from US$2.176 billion for the third quarter last year.
The company's earnings were negatively impacted by the cost of the carve-out and stock market listing of material science business Covestro, and costs associated with the integration of MSD's consumer health business.
Sales in its Pharmaceuticals segment rose by 11.7 per cent for the third quarter to US$3.833 billion, driven by the strong global performance of PBS-listed anticoagulant XARELTO (rivaroxaban) and eye therapy EYLEA (aflibercept).
"XARELTO registered a sales gain of 31.3 percent and thus further cemented its leading position among the non-vitamin K-dependent oral anticoagulants. Sales of EYLEA also rose significantly – advancing by 67 percent – mainly as a result of very good business in Europe and Japan after marketing authorization was granted in further indications," said the company.
Sales in its Consumer Health segment increased by 2.2 per cent to US$2.387 billion, boosted by products from MSD.
The company said it was downgrading it full-year revenue forecast for the year to “in the region” of US$50.78 billion, down from US$51.74 billion, as a result of shifting exchange rates. It confirmed its forecast for double-digit percentage growth in earnings.
Novo Nordisk expects earnings growth to slow
The Danish company reported a 29 per cent jump in third quarter profit but warned against the negative impact of pricing competition and the cost of launching recently approved diabetes therapies.
Third-quarter net profit rose to US$1.24 billion on net sales of US$3.95 billion, up 20 per cent on the year.
Global sales of GLP-1 analogue VICTOZA (liraglutide), which has been recommended by the Pharmaceutical Benefits Advisory Committee but is not listed on the PBS, rose 39 per cent.
According to Lars Rebien Sørensen, president and CEO, "We are satisfied with the results of the first nine months of 2015. Sales growth was primarily driven by VICTOZA aided by the high growth of the GLP-1 market. In the third quarter, a significant milestone was achieved with the US FDA approval of TRESIBA and we look forward to launching TRESIBA early 2016."
TRESIBA (insulin degludec) is expected to compete with insulin glargine, most commonly known as Sanofi's LANTUS.
The company forecast mid-to-high single-digit growth in operating profit for 2016, down from forecast growth in 2015 of around 20 per cent.
