BASEL, Switzerland—Novartis (NYSE: NVS) reported this week that “sales growth across all divisions” helped the company post first-quarter sales of $11.54 billion, an increase of 2 percent compared with the year-ago period. Novartis noted, however, sales declined 1 percent in the quarter on a constant-currency basis.

Net income declined 15 percent (constant currency) to $1.7 billion, which Novartis attributed to a decline in core operating income and a charge related to the discontinuation of a new-drug candidate.

In its financial report, Novartis noted that the growth plan for its Alcon division is “on track” and that “Alcon continued to accelerate innovation, strengthen customer relationships and improve operations” in the first quarter. Novartis reported that it continues to invest in Alcon’s growth and that the outlook for 2017 is “broadly in line with prior year to low single-digit growth” at Alcon.

As VMail reported, Novartis in January announced it was beginning a strategic review of Alcon and that options under consideration included a spinoff, an initial public offering (IPO) or retaining the business. “Options to maximize shareholder value of the Alcon division are under consideration,” Novartis said this week. “A status update will be provided towards the end of 2017.”

Alcon had net sales of $1.4 billion in the first quarter, a decrease of 1 percent compared with the year-ago period (an increase of 1 percent in constant exchange rates). Vision Care sales “continued to grow,” Novartis stated, noting that the increase in the Vision Care category was 4 percent at constant exchange rates, due to the “strong performance of the daily contact lens portfolio, including continued double-digit growth of Dailies Total1. Surgical sales declined 1 percent at constant exchange rates, “mainly due to continued competitive pressures in IOLs (intraocular lenses),” Novartis stated.

Alcon reported an operating loss of $43 million, which compares to operating income of $31 million in the prior-year quarter, according to Novartis, while core operating income totaled $187 million, a decline of 23 percent (18 percent on a constant currency basis). On a regional basis, Alcon sales in Europe, Middle East and Africa increased 4 percent at constant exchange rates, driven by Vision Care products, while sales in North America were flat.

Within the Vision Care segment of Alcon, sales totaled $571 million (an increase of 4 percent at constant exchange) in the first quarter, with contact lens sales rising 7 percent (constant exchange), “driven by strong performance of the daily lens portfolio, including continued double-digit growth of Dailies Total1 in all key markets,” Novartis reported. An increase in direct-to-consumer advertising and promotion also benefited sales in the quarter. Contact lens care declined 8 percent (constant exchange) “mainly due to the continued market shift to daily disposable lenses."