Novartis extended its earnings streak for a third consecutive quarter, reporting robust gains in net income and sales that led the pharmaceutical giant to once again revise its full-year forecast. The Swiss-listed company indicated it expects a low double-digit growth in 2024 net sales, a revision from its previous outlook of high single to low double-digit growth.
Core operating income is also anticipated to grow in the high teens, an increase from the earlier estimate of mid to high teens growth. The company’s optimistic guidance follows a strong third quarter, where attributable net income surged to $3.19 billion, compared to $1.76 billion a year prior. Net sales increased to $12.82 billion for the three months ending September 30, up from $11.78 billion the previous year. However, these figures did not meet the consensus forecast set by Visible Alpha, which predicted $3.89 billion in net income and $12.98 billion in revenue. Novartis attributed its sales growth to heightened demand for its heart failure medication Entresto, psoriasis treatment Cosentyx, and breast cancer drug Kisqali, reporting constant currency sales increases of 26%, 28%, and 43%, respectively.
Both Entresto and Cosentyx continued to see growth in markets such as the US, Europe, and China, while Kisqali displayed strong performance across all territories. "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 prostate cancer drug 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," commented Chief Executive Officer Vas Narasimhan. In contrast, analysts at Barclays noted that Novartis' strong quarterly performance aligned with expectations.
"Overall, at a high level, Novartis did what it needed to do, but we suspect the call will have a heavy focus on Pluvicto, pipeline updates, and considerations regarding 2025 in light of generics." Despite the positive news, shares dipped almost 3% on Tuesday midmorning..