Novartis AG (NVS) - Get Report Tuesday reported third quarter earnings that topped estimates on growth from two recently launched drugs - Cosentyx and Entresto.

Novartis reported sales of $12.4 billion in the third quarter year, slightly higher than analysts' expectations, while sore operating income was up 1 per cent in constant currencies at $2.4 billion.

Net income was up 7% in the three months to the end of September to $2.08 billion from last year's $1.95 billion. Earnings per share grew 10% to $0.89 from $0.81 a year ago.

Analysts surveyed by FactSet had expected net income for the quarter of $2.02 billion and sales of $12.34 billion.

Novartis shares fell 1.35% in the first hour of trading to Sfr84. Shares have gained 6.04% over the past three months.

The company said that it delivered top and bottom line growth in all divisions in the quarter.

The company reiterated its outlook of net sales to be broadly in line with last year, which came in at $47.8 billion, and core operating income expected to be broadly in line or a low single digit decline.

"Novartis became the first company to commercialize a CAR-T therapy, Kymriah, in Q3," CEO Joseph Jimenez said in a statement. "Group sales were solid, with growth in all divisions, and Alcon delivered strong growth in both sales and core operating income. We are on track to deliver our full year guidance, and have confidence in our growth phase."

The company is also undertaking a strategic review of its Alcon eye care business and said Tuesday that it indicates that creating a stand-alone company via a capital markets exit could create additional shareholder value.

The final decision will depend on Alcon's continued sales growth.

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