Novartis Raises Mid-Term Sales Growth Targets
November 28 2023 - 2:12AM
Dow Jones News
By Andrea Figueras
Novartis lifted its sales growth guidance for the mid-term after
what it called a progress in delivering its pure-play strategy.
The Swiss pharmaceutical company upgraded on Tuesday its
compound annual growth rate to 5% in the period between 2022 and
2027 and said that it expects a core operating income margin of
around 40% by 2027.
The company's focused strategy and financial discipline has
delivered robust sales, core operating income and free cash flow
growth, it said.
In its 2022 annual report, the company was targetting sales
growth of 4% compound annual growth rate over the next five years,
and growth above peer median beyond 2027.
"Novartis has now completed its transformation into a
'pure-play' innovative medicines company, delivering robust
increases in core margin and free cash flow, while also continuing
strong operational performance," Chief Executive Vas Narasimhan
said.
As for longer-term targets, Novartis aims to grow in the
mid-single digit on the back of the strength of de-risked existing
brands and pipeline assets, it said.
Regarding biomedical research and development tasks, the company
noted that it has streamlined resources to maximize its focus and
enhance competencies.
The portfolio now consists of 103 projects, with up to 15 key
submissions that expect regulatory approval in the 2024-27 period,
the company said.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
November 28, 2023 01:57 ET (06:57 GMT)
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