Novartis Boosts Annual Forecast on Strong Drug Demand

Novartis AG, one of the largest pharmaceutical firms worldwide, has increased its 2024 forecast after reporting a successful Q3, driven by high demand for its flagship medications. Total sales for the Swiss pharma giant grew by 10% to $12.8 billion (€11.9 billion), while core operating income surged by 20% to $5.15 billion (€4.78 billion) compared to last year.

Key drivers of this growth include the cardiac medication Entresto and the psoriasis treatment Cosentyx, which saw impressive sales gains of 26% and 28%, respectively. Pluvicto, a radioligand therapy for prostate cancer, experienced a 50% rise in sales due to its success in the U.S. market, where this innovative treatment continues to gain traction. Despite its growing availability in the EU, Pluvicto’s high price (about $42,500 in the U.S.) may impact European adoption due to varying healthcare budgets.

Novartis also gained two new FDA approvals in the U.S. for Kisqali, a breast cancer treatment, and Fabhalta, a drug for reducing proteinuria in adults with IgA nephropathy. CEO Vas Narasimhan attributed the company's robust Q3 performance to the broad success of its growth drivers and key new approvals, allowing the company to confidently raise its full-year guidance.

With an increased emphasis on innovation, Novartis has focused on areas like cardiovascular-renal-metabolic, immunology, neuroscience, and oncology. To advance in oncology and autoimmune treatment, Novartis recently paid $150 million (€139 million) to U.S. biotech Monte Rosa Therapeutics, aiming to develop molecular glue degrader (MGD)-based treatments. If this project succeeds in passing future regulatory and sales milestones, Monte Rosa could receive further payments totaling up to $2.1 billion (€1.94 billion).

Novartis has also been executing share buybacks, with $7.9 billion (€7.3 billion) remaining under the current plan. As Novartis pursues a more streamlined strategy, the company's renewed focus on innovative medicine positions it for sustained growth and expansion.