Novartis (NVS) Q1 Earnings Drop 18 percent

On Tuesday, Novartis AG (NYSE : NVS) announced that due to strong competition in the drugs market and manufacturing problems at a plant in the US, the company has experienced 18 percent drop in Q1 earnings.

Chief Executive, Joe Jimenez, stated that the Swiss pharmaceutical company would slowly resume the production at the Lincoln, Nebraska, after it was closed last year. The plant was closed after inspection reports showed possible contamination of blood pressure drugs,costing the company some $200 million in the quarter.

The company expects full year's profits to come below 2011 profit. In the same period last year, the net profit skidded to $2.33 billion from $2.82 billion, whereas, the sales slashed down 2 percent to $13.74 billion.
 
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