Novartis sees Alcon recovery opening door to spin-off IPO

* Novartis lifts Alcon full-year outlook

* CEO says Alcon recovery boosts options

* Sandoz hit again by U.S. price pressure (Adds comment from CEO, analyst, details throughout)

ZURICH, July 18 (Reuters) - Novartis long-suffering Alcon eye care unit's sales growth accelerated in the second quarter, boosting options for the business including a possible disposal, Chief Executive Joe Jimenez said on Tuesday.

Alcon sales rose 1 percent to $1.5 billion, including intraocular lenses that grew for the first time in the second quarter since 2014. Spending continued to promote products with eye surgeons, resulting in a $19 million operating loss.

Novartis has been reviewing Alcon for a possible disposal, with an update slated for this year. All options are under consideration, Jimenez reiterated on Tuesday, including a possible IPO that he has suggested could value Alcon at $25 billion to $35 billion.

"It just increases the options we have," Jimenez told reporters on a call. "It makes a capital markets exit a possibility, because you've got a growing business with presumably over time margins that are going to grow."

The shares opened 1.1 percent higher in Zurich.

Novartis boosted Alcon's full-year sales outlook slightly and now expects revenue to rise by a low single-digit percentage rate. It previously forecast revenue to remain stable or to rise by a low-single digit percentage.

"Although Alcon profits continued to decline, this is now moderating and showing signs that the company have it under control," Deutsche Bank analyst Tim Race said.

For all of Novartis, second-quarter core net income fell 2 percent to $2.87 billion, but beat the average analyst forecast of $2.668 billion in a Reuters poll. Sales fell 2 percent to $12.242 billion, hurt by declining revenue from blood cancer drug Gleevec.

Jimenez underscored plans to return Novartis to growth in 2018, as newer drugs including heart failure medicine Entresto, psoriasis treatment Cosentyx and breast cancer medicine Kisqali make up for generic competition now eating into Gleevec sales.

Cosentyx sales rose 90 percent to $490 million, while Entresto more than doubled to $110 million and remained on track to hit $500 million in 2017.

Even so, U.S. pricing headwinds are working against Novartis's Sandoz generics division, whose sales fell 5 percent to $2.5 billion. Fierce competition will continue, Jimenez said, predicting further mid-to-high-single-digit price erosion.

"Sandoz was soft," Bernstein analyst Timothy Anderson said. "Volume growth was anaemic, and overwhelmed by steady price erosion."