Novartis Q3 Earnings Beats Expectations On Strong Sales From Key Drugs, Lifts 2024 Outlook

On Tuesday, Novartis AG NVS reported third-quarter sales of $12.823 billion, up 9% (+10% on constant currency), beating the consensus of $12.76 billion. Volume contributed 12 percentage points to growth.

The Swiss pharma giant reported adjusted EPS of $2.06, up from $1.74 a year ago and beating the consensus of $1.96

Core operating profit for the third quarter grew to $5.15 billion from $4.41 billion the year prior.

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Novartis generated $6 billion in free cash flow for the third quarter, up 18% year-over-year.

“All key growth drivers contributed to the momentum. We achieved important indications expansions for Kisqali in early breast cancer and Fabhalta in IgA nephropathy, and we completed our PSMAfore filing for Pluvicto in the US. With the momentum in our business and pipeline, we were able to once again upgrade our full-year guidance and remain highly confident in our mid-term outlook,” said CEO Vas Narasimhan.

Quarterly Cosentyx sales gained 27% to $1.69 billion, driven by recent launches (including the HS indication and the IV formulation in the US) and volume growth in core indications.

Heart failure drug Entresto sales increased 26% to $1.87 billion, a demand-led growth. The drug has increased penetration in the U.S. and Europe following guideline-directed medical therapy for heart failure and in China with increased penetration in hypertension.

Multiple sclerosis drug Kesimpta sales reached $838 million, up +28%, reflecting increased demand for a high-efficacy product with convenient self-administered dosing.

Guidance: Novartis also raised its 2024 full-year guidance again this year.

In a statement, Novartis said it expects full-year core operating income to grow by a “high teens” percentage, compared with previous guidance of a “mid-to-high teens” percentage.

Novartis forecasts full-year sales growth in the low double digits, having previously guided for high-single to low-double-digit growth.

Price Action: NVS stock is down 3.29% at $111.82 during the premarket session at the last check on Tuesday.

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