Swiss pharma giant Novartis posts better-than-expected fourth-quarter sales – CNBC

Credit CardsLoansBankingMortgagesInsuranceCredit MonitoringPersonal FinanceSmall BusinessTaxesHelp for Low Credit ScoresInvestingSELECTAll Credit CardsFind the Credit Card for YouBest Credit CardsBest Rewards Credit CardsBest Travel Credit CardsBest 0% APR Credit CardsBest Balance Transfer Credit CardsBest Cash Back Credit CardsBest Credit Card Welcome BonusesBest Credit Cards to Build CreditSELECTAll LoansFind the Best Personal Loan for YouBest Personal LoansBest Debt Consolidation LoansBest Loans to Refinance Credit Card DebtBest Loans with Fast FundingBest Small Personal LoansBest Large Personal LoansBest Personal Loans to Apply OnlineBest Student Loan RefinanceSELECTAll BankingFind the Savings Account for YouBest High Yield Savings AccountsBest Big Bank Savings AccountsBest Big Bank Checking AccountsBest No Fee Checking AccountsNo Overdraft Fee Checking AccountsBest Checking Account BonusesBest Money Market AccountsBest CDsBest Credit UnionsSELECTAll MortgagesBest MortgagesBest Mortgages for Small Down PaymentBest Mortgages for No Down PaymentBest Mortgages with No Origination FeeBest Mortgages for Average Credit ScoreAdjustable Rate MortgagesAffording a MortgageSELECTAll InsuranceBest Life InsuranceBest Homeowners InsuranceBest Renters InsuranceBest Car InsuranceTravel InsuranceSELECTAll Credit MonitoringBest Credit Monitoring ServicesBest Identity Theft ProtectionHow to Boost Your Credit ScoreCredit Repair ServicesSELECTAll Personal FinanceBest Budgeting AppsBest Expense Tracker AppsBest Money Transfer AppsBest Resale Apps and SitesBuy Now Pay Later (BNPL) AppsBest Debt ReliefSELECTAll Small BusinessBest Small Business Savings AccountsBest Small Business Checking AccountsBest Credit Cards for Small BusinessBest Small Business LoansBest Tax Software for Small BusinessSELECTAll TaxesFiling For FreeBest Tax SoftwareBest Tax Software for Small BusinessesTax RefundsTax BracketsTax TipsTax By StateTax Payment PlansSELECTAll Help for Low Credit ScoresBest Credit Cards for Bad CreditBest Personal Loans for Bad CreditBest Debt Consolidation Loans for Bad CreditPersonal Loans if You Don’t Have CreditBest Credit Cards for Building CreditPersonal Loans for 580 Credit Score or LowerPersonal Loans for 670 Credit Score or LowerBest Mortgages for Bad CreditBest Hardship LoansHow to Boost Your Credit ScoreSELECTAll InvestingBest IRA AccountsBest Roth IRA AccountsBest Investing AppsBest Free Stock Trading PlatformsBest Robo-AdvisorsIndex FundsMutual FundsETFsBondsSwiss pharmaceutical giant Novartis on Friday reported better-than-expected sales in the fourth quarter and met its own guidance over the full-year stretch.Fourth-quarter net sales rose 16% on a constant currency basis to $13.2 billion, compared to the $12.795 billion estimated by analysts in an LSEG poll.Quarterly adjusted core operating income came in at $4.86 billion versus the $4.23 billion expected.Shares pared back some of their earlier gains to end the trading session 1.9% higher.For 2024, net sales rose 12% on a constant currency basis to $50.32 billion, versus $50.47 billion forecasted. Full-year core operating income increased 22% to $19.5 billion versus the $17.02 billion forecasted.The company said the sales growth was driven primarily by its blockbuster heart-failure drug Entresto and its arthritis medication Cosentyx.Novartis had raised its 2024 earnings guidance for the third consecutive quarter in October, saying it expected full-year net sales to grow in the “low double-digit” percentages and core operating income to grow in the ‘high teens” percentages.CEO Vas Narasimhan said the results marked a positive early signal since implementing a strategic overhaul in 2023 to position Novartis as a “pure-play innovative medicines company.””When you look at the momentum we’ve got in the business we really feel like we’ve got the growth drivers to take care of us through 2025,” Narasimhan told CNBC’s Carolin Roth.Novartis outlined its guidance for 2025, forecasting net sales will grow by “mid- to high single digits” and core operating income will increase by “high single to low double-digits.”Narasimhan also downplayed the expiration of the U.S. patent for its top selling drug Entresto, which brought in $7.8 billion in revenue globally in 2024. Patent expiration opens a drug up for development by generic drugmakers, thereby increasing competition.”We actually have tremendous replacement power,” he said, referring to drug makers’ ability to bring new treatments to market when patents expire on existing products.”There’s not many companies that can guide to the growth that we’re guiding to,” he continued, “given that we have these expiries. That’s really a testament to the pipeline and replacement power we have in the company. So we feel very good about the growth issue. We even feel confident we’ll be able to grow in 2026, when we have the full Entresto impact.”Looking ahead, Narasimhan said Novartis was focused on advancing its development pipeline, including more than 30 assets “with the potential to drive differentiated growth over the long term.”That includes several key clinical trial results due out later this year, chiefly a treatment for prostate cancer and another for chronic spontaneous urticaria, a type of skin condition.Narasimhan said the business would also continue to explore growth via acquisitions, particularly of smaller companies, to drive its early- and mid-stage development pipeline. Currently, around 60% of Novartis’ sales come from internally created medicines while 40% are external, Narasimhan said, adding he was nevertheless happy for that ratio to hit 50-50%.”Generally big deals have not paid off in the biopharmaceuticals sector. Bolt-ons do though, if you can integrate them well and bring those technologies into the company,” he said. During a bolt-on transaction, a company acquires another smaller business to complement or expand its existing offering.Correction: This article has been updated to accurately reflect Novartis’ October guidance for full-year 2024 and the company’s annual performance against this forecast.Got a confidential news tip? We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services.© 2025 CNBC LLC. All Rights Reserved. A Division of NBCUniversal
Data is a real-time snapshot *Data is delayed at least 15 minutes.
Global Business and Financial News, Stock Quotes, and Market Data
and Analysis.
Data also provided by

Source: https://www.cnbc.com/2025/01/31/novartis-novn-earnings-q4-full-year-fy24.html