NVS Novartis AG

By Adria Calatayud

Novartis raised its full-year earnings guidance for the third time this year after it reported higher net profit and sales for the third quarter, boosted by strong sales of key drugs.

The Swiss pharmaceutical giant said Tuesday that it now expects core operating profit to grow this year by a percentage in the mid to high teens range. It had previously anticipated a growth rate from low double percentage digits to mid teens excluding Sandoz, the generic-drugs unit that was spun off earlier this month.

Novartis reiterated its expectation for net sales growth of a high single digit in 2023.

The company had already upgraded its 2023 forecasts alongside its results for the first and second quarters.

With the Sandoz spinoff, Novartis completed a yearslong portfolio transformation that sharpened its focus on more lucrative innovative medicines.

The company's third-quarter results from continuing operations showed how demand for key medicines such as multiple-sclerosis treatments Kesimpta, heart drug Entresto, and Kisqali, Pluvicto and Scemblix for cancer helped its top and bottom lines.

Net sales for the quarter grew to $11.78 billion from $10.49 billion. Analysts polled by FactSet had expected sales to come in at $11.62 billion.

"Our growth drivers, including Kesimpta, Entresto, Kisqali and Pluvicto, continue to perform well in the market," Chief Executive Vas Narasimhan said.

Revenue from Kesimpta, Pluvicto and Scemblix more than doubled in the quarter, but Entresto and Cosentyx--a psoriasis treatment--remained the company's best-selling drugs, both topping $1 billion in quarterly sales, according to figures provided by Novartis.

Novartis credited higher sales for a jump in operating income from continuing operations, which came in at $4.41 billion and rose 21% at constant currency. Core operating profit margin was 37.4%, expanding by 1.4 percentage points.

The company made a quarterly net profit of $1.76 billion compared with $1.57 billion for the same period last year.

Looking ahead, Novartis said it intends to prioritize investment in three emerging platforms--gene and cell therapy, a precision radiation therapy called radioligand, therapies known as xRNA designed to block the production of disease-related proteins--in addition to its two established platforms of chemistry and biotherapeutics.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

October 24, 2023 03:17 ET (07:17 GMT)

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