Novartis (NYSE: NVS) reported Q2 EPS of $1.23, $0.05 better than the analyst estimate of $1.18. Revenue for the quarter came in at $12.47 billion versus the consensus estimate of $12.33 billion.

Significant positive innovation news in Q2

• Entrestgiven strong Class I recommendation in US and EU heart failure treatment guidelines
• JAMA Cardiology analysis found Entrestcould prevent or postpone 28,000 US deaths per year
• Cosentyx data showed durability of response in AS2 and PsA2 patients after twyears; head-to-head trials vs. HumiraR planned
• Phase III trial of CDK4/6 inhibitor LEE011 in HR+/HER2- advanced breast cancer stopped early due tpositive efficacy results at interim analysis
• Full results from FLAME study reinforce superiority of UltibrBreezhaler tSeretideR in COPD
• Positive FDA AdCom2 for biosimilar etanercept; biosimilar rituximab submitted in EU

Entrest ($32 million) continued tgrow steadily in Q2

• Based on positive treatment guidelines, decision was taken tincrease spending significantly in H2 2016 tbuild a US primary care field force and add incremental medical support
• Entrestsales expected tbe approximately USD 200 million for full year 2016

Alcon growth plan progressing

• Operations: Improved supply stability and reinforcing customer relationships
• Innovation: CE Mark in Europe for Dailies Total1 Multifocal and PanOptix with UltraSert

2016 Outlook:

• Net sales expected tbe broadly in line with prior year
• Based on the increased spending for Entresto, and depending on Gleevec erosion curve, core operating income expected to be broadly in line or decline low single digit

For earnings history and earnings-related data on Novartis (NVS) click here.