Swiss pharma giant Novartis posts better-than-expected fourth-quarter sales
Swiss pharmaceutical giant Novartis on Friday reported better-than-expected sales in the fourth quarter, but falling short of 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 were up 2.51% shortly after the market open.
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 and core operating income to both grow by "high teens" percentages versus the "mid- to high teens" previously forecast.
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."
Looking ahead, Narasimhan said the company was focused on advancing its development pipeline, including more than 30 assets "with the