Novartis AG (ADR) (NYSE: NVS) has reported the adjusted earnings per share of $1.22 in the second quarter of FY 17, beating the analysts’ estimates for the adjusted earnings per share of $1.18. Accordingly, the stock is trading in green and generated over 1.8% this morning (as of 10:48AM EDT on July 18th, 2017; Source: Google finance).

The company has reported 2 percent fall in the adjusted revenue to $12.2 billion in the second quarter of FY 17, but beating the analysts’ estimates for revenue of $12.1 billion. NVS’s Sandoz generics unit has posted a 5 percent fall in the sales as U.S. prices continued to fall.

But the group posted a smaller decline in the earnings than analysts had projected as newer medicines helped offset the eroding sales of its biggest drug. The company has reported in the second quarter the net income growth of 14 percent or 10 percent growth in USD mainly due to the divestment gains and lower amortization. The core operating income grew in line with the prior year due to the gross margin expansion and productivity, that has offset the generic erosion and growth investments.

Moreover, Novartis has pointed to early signs of a revival at the company’s Alcon eye-care division, which will strengthen his hand as he considers an exit from the ailing business. Alcon’s revenue in 2017 is expected to grow by a low “single-digit” percent. That’s a change from April when the company had said the unit’s sales may be unchanged from the prior year or expand slightly. During the second quarter, the sales for the business has grown 1 percent.

Meanwhile, Novartis is turning to newer medicines such as heart drug Entresto, psoriasis treatment Cosentyx and Kisqali for breast cancer to help counter a decline in sales of its blockbuster Gleevec, which is losing ground to cheaper copycat drugs. The use of Entresto, which had a slow start, and Cosentyx will likely be expanded to include new indications. Kisqali will also be “a key growth driver” as the company is going ahead with multiple tests in cutting-edge immune-oncology, in which the body’s defense system is primed to attack tumors.

Additionally, Novartis has reconfirmed the 2017 group outlook. The net sales is expected to be broadly in line with prior year (cc) and the core operating income is expected to be broadly in line or decline low single digit (cc).