Novartis no longer expects earnings decline at under-review Sandoz unit

"Implementation of our streamlined organizational model is progressing well," the company said in a statement.

Second-quarter core operating income declined 2% to $4.27 billion, slightly above the average analyst estimate of $4.19 billion in a Refinitiv poll.

For Novartis, which reports results in dollars, a strong dollar was a drag on the value of sales generated outside the United States.

Contributing to the decline, Novartis in May had to suspend production of precision nuclear cancer medicines known as radioligands. In addition, competition was a further drag on sales of multiple sclerosis drug Gilenya.

Providing growth momentum, quarterly revenue from heart failure drug Entresto jumped 27% to $1.13 billion, a touch below expectations.

Sales of psoriasis and arthritis drug Cosentyx gained 9% to $1.28 billion, in line with the market consensus