Novartis AG (NVS – Free Report) reported second-quarter 2017 core earnings of $1.22 per share, beating the Zacks Consensus Estimate of $1.16 but the recorded figure was a penny lower than the year-ago figure of $1.23.

Revenues declined 2% to $12.2 billion as volume growth was offset by the negative impact of generic competition and pricing but beat the Zacks Consensus Estimate of $12.1 billion

A look at Novartis’ share price movement in the last three months shows that the stock outperformed the Zacks classified Large Cap Pharma industry. Its shares have rallied 14.5% compared with the 7.2% gain recorded by the industry.

All growth rates mentioned below are on a year-over-year basis and at constant exchange rates.

The Quarter in Detail

Novartis operates under three segments: Innovative Medicines (Pharmaceuticals), Alcon (Ophthalmology unit) and Sandoz (Generics).

The Innovative Medicines division recorded sales of $8.3 billion, up 1%. Generic competition and pricing pressure impacted sales at the segment, primarily due to the entry of generics for Gleevec in the U.S and Europe. Nevertheless, growth products – Cosentyx, Entresto, Promacta/Revolade, Jakavi, Tafinlar + Mekinist and Gilenya boosted sales.

Psoriasis Cosentyx sales surged 90% on the back of strong growth in its three approved indications while Entresto too had solid quarter as sales benefited from continued access improvements, expansion of sales force in the U.S and reimbursement in Europe. Oncology franchise grew 9% driven mainly by Promacta/Revolade, Jakavi, Tafinlar + Mekinist.

Sales at the Sandoz division were $2.5 billion, down 4% as volume growth was offset by price erosion mainly in the U.S. Sales in the U.S. declined 15% due to pricing pressure in retail generics and prior year launch timing. Biopharmaceuticals sales grew 6% to $260 million mainly driven by Zarxio in the U.S.

Sales at the Alcon division were $1.5 billion, up 3%. Surgical sales increased 3% driven by growth in cataract consumables and vitreoretinal, intraocular lenses returning to growth globally. Vision Care sales were up 2% fuelled by the continued double-digit growth of Dailies Total1.