Novartis Posts Results Above Estimates, Raises Outlook

Novartis (NVS) on Tuesday posted third-quarter results that beat analysts’ estimates and raised its full-year outlook, buoyed by strong sales of drugs like breast-cancer treatment Kisqali.

The Swiss pharmaceutical firm now forecasts 2024 core operating income growth of a high-teens percentage, compared with its previous target of a mid- to high-teens percentage.

Novartis now projects full-year net sales to grow by a low-double-digit percentage, up from a high-single-digit percentage to low-double-digit percentage previously.

CEO Says Business, Pipeline Momentum Led To Boosted Outlook

“With the momentum in our business and pipeline, we were able to once again upgrade our full-year guidance and remain highly confident in our mid-term outlook,” Chief Executive Officer (CEO) Vas Narasimhan said

Aided by a 43% year-over-year constant-currency sales jump of Kisqali, third-quarter net sales rose 10% to $12.82 billion, while core operating profit increased 20% to $5.15 billion. Analysts polled by Visible Alpha expected $12.62 billion and $4.87 billion, respectively.

American depositary receipts (ADRs) of Novartis are trading down 3% in premarket trading but are up 15% this year through Monday’s close.