Novartis Surpasses Sales Expectations on Strong Medicine Demand

On Tuesday, Swiss pharmaceutical company Novartis announced that it had achieved a more robust profit than anticipated 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.

Due to the robust performance, the company revised its annual forecast, anticipating a sales increase in the high single-digit percentages and a core operating income growth in the low double-digit percentages. Earlier in January, they had provided a broader prediction range.

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

Throughout 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, reaching approximately $2.3 billion, whereas the revenue for the arthritis treatment Cosentyx rose by 18%, totaling roughly $1.5 billion.

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

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

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

Novartis is closely watching decisions from the White House to determine how pharmaceutical products coming into the US will be taxed.

The Trump administration opened a 21-day national security probe into the industry earlier this month. Pharmaceuticals are currently exempt from a so-called "reciprocal" tariff rate, although Trump has suggested imposing a 25% levy on medicines.

Recently, Novartis declared an investment of $23 billion in the U.S. over the coming half-decade to construct and enhance 10 sites. Their objective is to manufacture all medications locally for American patients.