Novartis Raises Earnings Guidance Again After Key Drugs Boost Profit, Sales -- Update
October 24 2023 - 3:32AM
Dow Jones News
By Adria Calatayud
Novartis raised its full-year earnings guidance for the third
time this year after it reported higher net profit and sales for
the third quarter, boosted by strong sales of key drugs.
The Swiss pharmaceutical giant said Tuesday that it now expects
core operating profit to grow this year by a percentage in the mid
to high teens range. It had previously anticipated a growth rate
from low double percentage digits to mid teens excluding Sandoz,
the generic-drugs unit that was spun off earlier this month.
Novartis reiterated its expectation for net sales growth of a
high single digit in 2023.
The company had already upgraded its 2023 forecasts alongside
its results for the first and second quarters.
With the Sandoz spinoff, Novartis completed a yearslong
portfolio transformation that sharpened its focus on more lucrative
innovative medicines.
The company's third-quarter results from continuing operations
showed how demand for key medicines such as multiple-sclerosis
treatments Kesimpta, heart drug Entresto, and Kisqali, Pluvicto and
Scemblix for cancer helped its top and bottom lines.
Net sales for the quarter grew to $11.78 billion from $10.49
billion. Analysts polled by FactSet had expected sales to come in
at $11.62 billion.
"Our growth drivers, including Kesimpta, Entresto, Kisqali and
Pluvicto, continue to perform well in the market," Chief Executive
Vas Narasimhan said.
Revenue from Kesimpta, Pluvicto and Scemblix more than doubled
in the quarter, but Entresto and Cosentyx--a psoriasis
treatment--remained the company's best-selling drugs, both topping
$1 billion in quarterly sales, according to figures provided by
Novartis.
Novartis credited higher sales for a jump in operating income
from continuing operations, which came in at $4.41 billion and rose
21% at constant currency. Core operating profit margin was 37.4%,
expanding by 1.4 percentage points.
The company made a quarterly net profit of $1.76 billion
compared with $1.57 billion for the same period last year.
Looking ahead, Novartis said it intends to prioritize investment
in three emerging platforms--gene and cell therapy, a precision
radiation therapy called radioligand, therapies known as xRNA
designed to block the production of disease-related proteins--in
addition to its two established platforms of chemistry and
biotherapeutics.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
October 24, 2023 03:17 ET (07:17 GMT)
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