July 19 Reuters Swiss drugmaker Novartis said earnings at its generic drugs arm Sandoz would likely be flat this year rather than declining, adding that a strategic review over the unit39;s future was progressing as planned.

In a statement on Tuesday, Novartis confirmed its group guidance for 2022 core operating income to grow in a midsingle digit percentage range.

The company repeated previous guidance that it would provide an update on the future of Sandoz by the end of 2022.

During the second quarter, the genericdrugs business benefited from higher prescription numbers in markets outside the United States, as patients were no longer held back by pandemicrelated restrictions.

Finance Chief Harry Kirsch told journalists in a call that improved growth prospects for Sandoz did not make a change in ownership less likely.

Recovering growth shouldn39;t mean that you keep it, he added. The pharma major also said it was now targeting 1.5 billion in savings from an ongoing groupwide cost cutting scheme, where it had previously seen savings of at least 1 billion by 2024.

Implementation of our streamlined organizational model is progressing well, the company said in a statement.

Secondquarter core operating income declined 2 to 4.27 billion, slightly above the average analyst estimate of 4.19 billion in a Refinitiv poll.

For Novartis, which reports results in dollars, a strong dollar was a drag on the value of sales generated outside the United States.

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