Adjusted EPS for the quarter was $1.38, down from $1.48 in 2011, but beating analysts who had predicted $1.33, Bloomberg noted.
The company said sales for the second quarter slipped 4% to $14.3 billion, which matched Wall Street estimates.
Novartis officials attributed the earnings slump to stronger competition from generic drugs and the negative currency exchange rates resulting from a rising U.S. dollar. The dollar’s strength trimmed sales revenue by 5% during the quarter.
Consumer health product sales dropped 24% to $904 million, compared to last year. Quality-control problems led the company to suspend production at its Lincoln, Neb., facility in January. The plant is expected to resume production by the fourth quarter.
Pharmaceutical revenues slid 1% to $8.3 billion. Novartis’ blood pressure medication Diovan will see its patent expire later this year and is already facing pressure from generics, causing its sales to fall 16% during the quarter.
But sales of Gilenya, a multiple sclerosis treatment, rose to $283 million, up from $79 million last year. Novartis expects Gilenya sales to hit $1 billion by year-end.
Shares of Novartis rose more than 1% in Thursday morning trading in New York.