Drugmaker Novartis climbs 4.4% after guidance rise on sales of blockbuster drugs

Shares of Swiss drugmaker Novartis climbed as much as 4.8% in early deals on Tuesday, after the company raised its full-year guidance following better-than-expected first-quarter results.

Stock pared gains slightly to trade up 4.6% by 8:50 a.m. London time.

Novartis' net sales rose 11% in the first three months of the year, while core operating income increased 22% over the same period.

CEO Vas Narasimhan said the growth solid across all its major brands, which include blockbuster heart failure drug Entresto and psoriasis drug Cosentyx.

"Our performance was broad-based, across all key growth brands and geographies, allowing us to raise guidance for the full year 2024," he said in a statement.

The company said 2024 net sales are now anticipated to pick up by a high-single to low double-digit percentage, up from a previous outlook of mid-single-digit growth.

The drugmaker has also revised its expectations for core operating income, now set to expand by a low double-digit to mid-teens percentage, up from the high single-digit growth forecast prior.

Narasimhan said the company continued to advance its drug pipeline in the first quarter, including treatments for prostate cancer and leukemia.

"The momentum in our business and pipeline gives us continued confidence in our mid- and long-term growth outlook," he said.