Novartis raises annual profit outlook after strong Q3 sales growth

Novartis AG has raised its annual profit forecast following a strong third-quarter performance, driven by robust sales growth and margin expansion. The Swiss pharmaceutical company now anticipates its core operating income to either remain steady or increase by a low single-digit percentage, compared to the previous projection of a slight decline. Despite this positive outlook, the firm maintained its expectations for low single-digit sales growth.

During the quarter ending September, net sales climbed by 4% to reach $14.52 billion, while core operating income expanded by 11% to $6.04 billion. This growth was primarily fueled by notable products, including Kisqali for breast cancer, Kesimpta for multiple sclerosis, and Scemblix. The cholesterol drug Leqvio also experienced a substantial surge in sales, up by 63%.

However, the company reported a considerable decline in operating income, down 59% to $1.84 billion and net income falling by 70% to $1.20 billion. This drop was mainly attributed to a $1.9 billion partial impairment charge related to the experimental drug del-desiran, which failed to meet its primary endpoint in a recent late-stage trial for myotonic dystrophy type 1.

Chief Executive Vas Narasimhan attributed the improved outlook to a combination of priority brands, new launches, and productivity measures. Additionally, Novartis received positive results from a late-stage trial of remibrutinib, a promising candidate in the treatment of relapsing multiple sclerosis, further strengthening its development pipeline.