- In its Q1 FY23 earnings release, Novartis AG NVS announced cutting its pipeline by around 10% as CEO Vas Narasimhan's campaign to turn it into a "pure-play" drugmaker goes full steam.
- Novartis raised its full-year sales and profits outlook after solid earnings in the first quarter on the back of a handful of new drugs.
- Novartis said its operating profit would likely increase in the high single digits, while group sales are expected to grow in the mid-single digits.
- Following a "comprehensive review of R&D projects" during the first quarter of 2023, the pharma giant decided to discontinue or out-license projects for considerations like strategic fit, asset value, commercial potential, and competitive landscape.
- According to an investor presentation, Novartis' pipeline will have 136 clinical-stage projects, including two biosimilars.
- "We have a clear strategy in five therapeutic areas plus TAX where we house our renal and ophthalmology gene therapy programs," Novartis CEO Vas Narasimhan said in an earnings call.
- In September, Novartis said it would focus on five investment areas: cardiovascular, immunology, neuroscience, solid tumors, and hematology medicine.
- Prostate cancer drug, Pluvicto saw a strong launch "with demand continuing to exceed supply," which has led to a supply shortage.
- Novartis noted that the two new sites were recently approved for production to address the shortage. For 2024 and beyond, it's targeting at least 250,000 doses made annually.
- Price Action: NVS shares are up 3.36% at $103.96 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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