PharmaNovartis continues strong run in the final quarter of 2024
SDA
31.1.2025 - 07:04
Novartis continues to grow. (archive image)
Keystone
Novartis has once again accelerated growth in the final quarter of 2024. The Basel-based company has thus easily achieved its own forecasts. Shareholders are to share in the success with an increased dividend of 3.50 Swiss francs.
Keystone-SDA
31.01.2025, 07:04
31.01.2025, 07:40
SDA
Between October and December, Novartis generated sales of 13.2 billion US dollars. This is an increase of 15 percent compared to the same period last year, the Group announced on Friday. At constant exchange rates (CER), the increase amounted to 16 percent, which represents a further acceleration compared to the third quarter (+10%).
Growth was once again driven by the heart drug Entresto, Kesimpta (multiple sclerosis), Kisqali (breast cancer), Cosentyx (psoriasis, among others) and Leqvio (cholesterol). They all recorded double-digit percentage increases in sales.
In operating terms, Novartis earned USD 3.5 billion (+37%) in the final quarter, while net profit amounted to USD 2.8 billion compared with USD 2.6 billion in the previous year. The increase was mainly due to the higher operating result.
Earnings better than expected
For analysts, however, the core operating profit adjusted for various factors is more important. At 4.9 billion, this was better than the AWP consensus of just under 4.5 billion in the fourth quarter. The corresponding margin climbed by 3.4 percentage points to 36.9 percent. Here, Novartis has set itself a medium-term target of above the 40 percent mark.
In the full financial year 2024, Novartis generated sales of CHF 50.3 billion (+11%). At constant exchange rates, this represents an increase of 12 percent. The company thus achieved the net growth in the low double-digit percentage range forecast by management. The bottom line was a net profit of just under 12 billion after 8.6 billion in the previous year.
"Novartis has achieved one of the strongest financial results in the company's history in its first financial year as a pure-play innovative pharmaceutical company," CEO Vas Narasimhan is quoted as saying in the press release.
In the current year, Novartis management is aiming for further growth at constant exchange rates. Sales at Group level are expected to increase in the mid to high single-digit percentage range. An increase in the high single-digit to low double-digit percentage range is targeted for core operating profit.
In 2025, the Basel-based company is likely to be confronted with the first copycat products for the drugs Tasigna, Promacta and Entresto from the middle of the year. However, the Group did not disclose how high the sales erosion is likely to be.