Swiss pharmaceutical giant Novartis 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, exceeding analysts’ estimates. Quarterly adjusted core operating income was $4.86 billion, higher than the expected $4.23 billion. Shares ended the trading session 1.9% higher.
For 2024, net sales increased by 12% to $50.32 billion, slightly below the forecast of $50.47 billion. Full-year core operating income grew by 22% to $19.5 billion, surpassing the forecast of $17.02 billion. The sales growth was primarily driven by the heart-failure drug Entresto and arthritis medication Cosentyx.
Novartis raised its 2024 earnings guidance for the third consecutive quarter in October, expecting net sales to grow in the “low double-digit” percentages and core operating income to grow in the “high teens” percentages. CEO Vas Narasimhan expressed confidence in the company’s growth drivers through 2025.
Looking ahead to 2025, Novartis forecasted net sales to grow by “mid- to high single digits” and core operating income to increase by “high single to low double-digits.” Narasimhan emphasized the company’s ability to bring new treatments to market despite the expiration of the U.S. patent for Entresto.
Novartis is focused on advancing its development pipeline, with over 30 assets that have the potential for long-term growth. The company will continue exploring growth through acquisitions, particularly of smaller companies, to enhance its development pipeline. Narasimhan highlighted the importance of bolt-on transactions in the biopharmaceutical sector for successful integration of new technologies.
