FY operating income flat, slightly below expectations
Co on track to spin off generic business Sandoz in H2
Market pinning hopes on breast cancer, blood disorder therapies
Shares fall on 39;disappointing39; Sandoz outlook

BASEL, Feb 1 Reuters Novartis on Wednesday predicted that core operating income would grow in a mid single digit percentage range in 2023 following stagnation last year, as the Swiss drugmaker prepares to spin off its Sandoz generics business.

Fullyear core operating income was broadly flat at 16.7 billion, it said in a statement, coming in slightly below market expectations of 16.8 billion.

Adjusted for overall negative currency effects, group sales in 2022 advanced 4 to 50.5 billion as gains from heart failure drug Entresto and multiple sclerosis MS drug Kesimpta were partly offset by competition from cheap generic copies of established MS drug Gilenya.

Novartis said it was on track to spin off its generics unit Sandoz in the second half of the year as part of its effort to sharpen its focus on its patented prescription medicines.

Analysts have welcomed a programme unveiled in 2022 to trim costs and cut 8,000 jobs and plans to focus on fewer therapy areas and drug technologies. But the market has been underwhelmed by prospects for mediumterm growth from new drugs.

Novartis shares were down 1.3 in early trade on Wednesday and have fallen about 11 since January 2020, underperforming most rivals.

Credit Suisse analysts said that bestselling…