Novartis upgrades Group outlook after Q1

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Novartis closed the first quarter of 2023 better than expected. Net sales in the first three months of 2023 increased by 3 percent to $13 billion. At constant exchange rates (cc) it rose 8 percent, Novartis said on Tuesday.

“Novartis started 2023 with strong growth,” CEO Vas Narasimhan (46) says happily.

Sales of cancer, MS and heart drugs

As always, the pharmaceutical division Innovative Pharmaceuticals made the most important contribution to sales. It exceeded $10.6 billion (+3%) in the first quarter.

Growth was mainly supported by volume increases. At the pharmaceutical level, sales of the heart drug Entresto, the cancer treatments Pluvicto and Kisqali, and the MS drug Kespta showed strong growth.

In contrast, sales of the psoriasis drug Cosnetyx fell slightly. This is mainly due to changes in wages in the US. Novartis also continued to face generic competition for its MS drug Gilenya.

Sandoz’s split in the second half of the year

The generics division of Sandoz, which is known to be spun off during the year, reported sales of 2.4 billion (+4 percent). Novartis explained that growth was primarily driven by its European business.

Novartis confirms its target to complete the transaction in the second half of the year, taking into account the planned split.

Operationally, operating profit remained at US$2.9 billion during the reporting period. As a result, net profit was 2.3 billion, 3 percent higher.

Annual forecast upgraded

Core, the focus of investors and analysts and adjusted for various influences, rose 8 percent in the first quarter. It came under the guidance of management, which predicted an increase in the low to mid-single-digit percentage range and also exceeded the AWP consensus analyst estimate.

For the full year, Novartis management raises previous targets. For example, Novartis is targeting sales growth in the mid-single-digit percentage range. Previously, the forecast was for an increase in the low to mid-single-digit percentage range. Core operating result is expected to increase in the high single digit percentage range. That’s more than previously predicted growth in the mid-single-digit percentage range. (SDA/sfa)

Source :Blick