Tue, Apr 23rd 2024
Novartis kicks off 2024 with robust financial growth, spurred by strategic focus on pharmaceuticals, leading to an upward revision of annual forecasts.
Novartis has reported a substantial growth trajectory in the first quarter of 2024, achieving a total sales revenue of $11.83 billion, marking an 11% increase compared to the same period last year.
This performance is highlighted by a net profit of $2.69 billion, up from $2.15 billion in Q1 of the previous year.
The Swiss pharmaceutical giant, having divested its generics division Sandoz last October, now operates purely as a focused pharmaceutical entity.
Operational earnings reaching $3.4 billion, a 29% increase year-over-year. Core operating profit, a crucial measure for analysts, stood at $4.5 billion, surpassing the AWP consensus for the quarter.
Novartis has raised its financial projections for 2024. The company now anticipates sales growth in the high single-digit to low double-digit percentage range at constant exchange rates (CER), revised upwards from a previously forecasted mid-single-digit percentage range.
Key drivers of this growth include flagship products like the cardiac medication Entresto, the psoriasis treatment Cosentyx, Kesimpta for multiple sclerosis, Kisqali for breast cancer, radioligand therapy Pluvicto, and cholesterol-lowering drug Leqvio.
The core operating profit margin also improved by 2.2 percentage points to 38.4 percent, edging closer to the company’s target of a 40 percent margin.
Looking ahead, Novartis has noted potential currency impacts, anticipating a negative effect of 2 percentage points on net sales and 4 percentage points on core operating income for the year.
Additionally, the company is preparing for a leadership transition, proposing Giovanni Caforio to succeed Jörg Reinhardt as Chairman of the Board of Directors at the 2025 Annual General Meeting. Caforio, previously Executive Chairman of Bristol Myers Squibb, is set to lead Novartis through its next phase of growth and operational excellence.
©Keystone/SDA
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