Novartis reported strong third-quarter earnings, exceeding analyst expectations and raising its full-year guidance. However, the company faced a setback with a delayed pelabresib filing, leading to an impairment charge. Despite this, Novartis remains optimistic about its future growth, particularly in the radiopharmaceutical market with its Pluvicto drug, while facing competition from other companies developing similar therapies.
Novartis AG (NVS) exceeded analyst estimates in the third quarter, reporting a 9% increase in sales to $12.823 billion, driven by strong performance across key growth drivers. The company also raised its full-year guidance, reflecting its confidence in continued momentum. Notable highlights include the successful launch of new indications for Kisqali and Fabhalta, and the growth of Cosentyx, Entresto, and Kesimpta.
Monte Rosa Therapeutics Inc. (NASDAQ: GLUE) saw its stock skyrocket over 30% in premarket trading on Monday after announcing a global exclusive development and commercialization agreement with pharmaceutical giant Novartis AG (NYSE: NVS) for its VAV1 MGDs, including MRT-6160. The deal grants Novartis worldwide rights to develop and commercialize the drug, which is currently in Phase 1 clinical trials for immune-mediated conditions. The partnership highlights the potential of MRT-6160, a novel drug targeting a key signaling protein involved in immune responses, and its promising future in treating various immune-related diseases.
Novartis’ Kesimpta (ofatumumab) demonstrated sustained efficacy in treating relapsing multiple sclerosis (RMS) for up to six years, leading to less disability and disease progression compared to switching from Aubagio (teriflunomide). This data was presented at the European Committee for Treatment and Research in Multiple Sclerosis. The FDA also approved Novartis’ Kisqali (ribociclib) for adjuvant treatment of high-risk early breast cancer.
Novartis AG, the pharmaceutical giant, has suffered a legal setback in its efforts to prevent the launch of a generic version of its blockbuster heart-failure drug, Entresto. A federal court ruled against Novartis’ request to block MSN Pharmaceuticals from launching its generic version, citing a low likelihood of winning the patent infringement lawsuit. While the ruling temporarily suspends MSN’s sales pending an appeal, it marks a significant blow to Novartis’ efforts to protect its intellectual property and maintain market dominance for Entresto, its top-selling drug.
Novartis AG (NVS) announced FDA approval for Lutathera (lutetium Lu 177 dotatate) for pediatric patients aged 12 years and older with somatostatin receptor-positive (SSTR+) gastroenteropancreatic neuroendocrine tumors (GEP-NETs). Lutathera is the first therapy specifically approved for pediatric GEP-NET patients, offering a significant advancement in their treatment options.
Novartis AG (NYS: NVS) has raised its full-year revenue and profit guidance, driven by a strong first quarter performance. The Swiss drugmaker’s revenue growth is now expected to be in the high-single to low-double-digit percentage range, compared to its earlier mid-single-digit forecast. Core operating income is also expected to increase by the low-double-digit to mid-teen percentage, exceeding the previous expectation of a high-single-digit rise.
In the first quarter, Novartis reported revenue of $11.8 billion, surpassing analysts’ estimates of $11.5 billion. Adjusted earnings per share (EPS) were $1.80, up 23% year-over-year and higher than the $1.73 expected.
The company’s performance was broad-based, with growth across all key growth brands and geographies. Momentum from psoriasis drug Cosentyx, relapsing Multiple Sclerosis medicine Kesimipta, and high cholesterol drug Leqvio contributed to the strong results.
Novartis CEO Vas Narasimhan expressed confidence, stating, “Novartis continued our strong momentum with both sales growth and core margin expansion in Q1.” He added, “Our performance was broad-based, across all key growth brands and geographies, allowing us to raise guidance for the full year 2024.”
Following the earnings announcement, shares of Novartis rose 2.3% to $97.30 in early afternoon trading on Tuesday.
The U.S. Food and Drug Administration (FDA) has approved Novartis’ Lutathera for children 12 years and older with somatostatin receptor-positive (SSTR+) gastroenteropancreatic neuroendocrine tumors (GEP-NETs). This marks the first approval of a medicine for children with this type of rare cancer.
In an interview on ‘Money Movers’, Novartis CEO Vas Narasimhan discussed the factors driving the company’s strong financial guidance and addressed potential challenges related to pricing in the U.S. market.
In an exclusive interview with ‘Money Movers,’ Novartis CEO Vas Narasimhan discusses the factors behind the company’s strong guidance, the potential for pricing friction in the U.S. market, and other key issues.
