By Novartis, the Swiss pharmaceutical giant, has once again raised its full-year earnings guidance after reporting robust financial results for the third quarter. The company’s net profit and sales were higher, primarily driven by strong sales of its key drugs.
Revised Growth Expectations
Novartis now anticipates a growth rate in core operating profit for this year to be in the mid to high teens range. Previously, the company expected a growth rate ranging from low double percentage digits to mid teens, excluding its generic-drugs unit, Sandoz, which was recently spun off.
The company also reiterated its expectation for net sales growth of a high single digit in 2023. This upgraded forecast aligns with the company’s past upgrades made in conjunction with its first and second-quarter results.
Portfolio Transformation and Focus on Innovative Medicines
With the completion of the Sandoz spinoff, Novartis has successfully undergone a long-term portfolio transformation, allowing it to sharpen its focus on more lucrative innovative medicines.
Impact of Key Medicines
Novartis’ third-quarter results from continuing operations demonstrate the strong demand for several key medicines. Notably, sales of Kesimpta (for multiple sclerosis treatment), Entresto (for heart conditions), and Kisqali, Pluvicto, and Scemblix (for cancer treatment) have significantly contributed to the company’s top and bottom lines.
Financial Performance
Net sales for the quarter reached $11.78 billion, compared to $10.49 billion in the previous year. Analysts polled by FactSet had expected sales to be around $11.62 billion.
Novartis’ impressive performance in the third quarter indicates its continued strength in the pharmaceutical market. With ongoing profitability and steady growth, the company remains well-positioned for future success.
Novartis Reports Strong Quarterly Performance
Novartis, a leading pharmaceutical company, has announced impressive results in its latest financial report. Chief Executive Vas Narasimhan expressed satisfaction with the performance of key growth drivers, including Kesimpta, Entresto, Kisqali, and Pluvicto, which continue to excel in the market.
According to figures provided by Novartis, revenue from Kesimpta, Pluvicto, and Scemblix more than doubled in the quarter. However, the company’s best-selling drugs remained Entresto and Cosentyx, both achieving over $1 billion in quarterly sales.
Novartis attributed its solid financial performance to higher sales, resulting in a significant increase in operating income from continuing operations. The company reported an operating income of $4.41 billion, a notable 21% rise at constant currency. Furthermore, the core operating profit margin expanded by 1.4 percentage points to reach an impressive 37.4%.
In terms of net profit, Novartis recorded $1.76 billion for the quarter, compared to $1.57 billion during the same period last year.
Looking towards the future, Novartis has outlined its commitment to prioritize investment in three emerging platforms. These platforms include gene and cell therapy, a precision radiation therapy known as radioligand, and xRNA therapies designed to block the production of disease-related proteins. These will complement the company’s well-established platforms of chemistry and biotherapeutics.
Novartis’s impressive performance reflects its dedication to innovation and strategic investments in emerging technologies. With a strong focus on driving growth and delivering effective treatments, Novartis continues to be a key player in the pharmaceutical industry.
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