Swiss drugmaker Novartis believes it will take at least 12 months to find a new vaccine to treat the coronavirus, given the fast spread of the outbreak, according to CEO Vasant Narasimhan.
However, Novartis said it does not expect the outbreak to hit its own supply chain as it predicted rising sales and profits for 2020, including from its Chinese market.
Fourth-quarter core net income at the company rose to $2.99bn (£2.27bn, €2.27bn), a 13 per cent rise in constant currencies, as its new Zolgensma gene therapy gained traction and sales of five-year-0old drugs Cosentyx and Entresto continued to power ahead.
Trade Novartis – CHF – NOVN CFD
Overall fourth-quarter sales rose 9 per cent to $12.4bn. Novartis expects net sales to grow in a mid-to high single digit percentage range this year, with core operating income expected to grow in the high single to low double digit percentages.
In China, the company has asked staff to work from home until February 10 while suspending business travel to and from Wuhan, the city where the coronavirus began.
Narasimhan said: “First and foremost, our concern is for our own associates. We’re also working to support the public health infrastructure in China, as best we can, with our local teams. We don’t see any disruptions to our supply chain at this point in time.”
China accounts for more than $2bn in annual business for Novartis.
For the company’s main drugs business in 2019, the core margin improved to 33.5 per cent of sales. Novartis shares were up 0.1 per cent to 92.69 francs in early trading.
Meanwhile British Airways has cancelled all direct flights to and from mainland China, as concerns grow about the impact of a spreading coronavirus on global travel. The cancellations are said to be in effect until January 31 while the airline assesses the situation. However flights are not expected to resume in February. The airline is still operating in and out of Hong Kong.
The US and Japan are also flying citizens out of Wuhan as the death toll rises to 132 and the first case appeared in the Middle East. The number of confirmed cases in the country has now risen to 6,078.
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