Novartis Surpasses Sales Expectations on Strong Medicine Demand

The Swiss pharmaceutical company Novartis announced on Tuesday that it achieved a higher than anticipated profit during the initial quarter of the year.

The net sales increased by 15% on a constant currency basis to reach $13.2 billion, surpassing the analyst estimate of $13.12 billion.

The core operating income amounted to $5.6 billion, marking a 23% increase from the previous quarter, whereas the core net income rose by 22% to reach $4.5 billion.

Given the robust performance, the company has revised its annual forecast, anticipating a sales increase in the high single-digit percentage range and a core operating income growth in the low double-digit percentage range. Initially, in January, they had provided a broader projection.

The sales in the previous quarter were boosted by medications for conditions such as arthritis, breast cancer, multiple sclerosis, and heart failure.

During the quarter, the firm's breast cancer treatment Kisqali experienced a revenue increase of 56%, totaling $956 million.

The heart failure medication Entresto experienced a 22% increase in sales, reaching approximately $2.3 billion, whereas the arthritis treatment Cosentyx showed an 18% growth in revenue, totaling roughly $1.5 billion.

The CEO of Novartis, Vas Narasimhan, pointed out new approvals in the earnings statement as well.

"We also reached important innovation benchmarks this quarter, including new approvals for Pluvicto in the pre-taxane setting, Vanrafia for IgA nephropathy, and Fabhalta for C3G," Narasimhan stated.

He stated, “We continue to concentrate on progressing our top-tier pipeline and remain optimistic about meeting our growth expectations."

Novartis is carefully monitoring choices made by the White House to understand how taxes will affect pharmaceutical goods entering the U.S. market.

Earlier this month, the Trump administration initiated a 21-day nationwide security investigation into the sector. At present, pharmaceuticals are not subject to what’s known as a "reciprocal" tariff rate; however, Trump has hinted at potentially applying a 25% tax on medications.

A few weeks back, Novartis declared its plan to invest $23 billion in the U.S. over the coming half-decade. This investment will be utilized to construct and enhance 10 sites. Their objective is to manufacture all medications needed for American patients within the country itself.