Novartis lifts guidance again as demand climbs for top drugs

By Barbara Kollmeyer

Key growth drivers from the quarter included Entresto and Kesimpta drugs

Novartis has boosted its 2024 outlook for a second time this year, thanks to strong sales for some of its biggest drugs used to treat heart failure and other ailments.

The Swiss drugmaker (CH:NOVN) (NVS) said Thursday that it's now forecasting core operating income to grow a mid-to-high teens percentage from low double-digit to mid-teens. Net sales are forecast to grow high-single digit to low double-digit, which was unchanged.

Novartis first raised its 2024 outlook in April, citing strong demand for heart and psoriasis drugs.

Second-quarter profit for Novartis jumped 43% to $3.24 billion from $2.28 billion, and core earnings per share rose to $1.97 from $1.69. Net sales climbed 9% to $12.51 billion from $11.43 billion.

Analysts polled by Visible Alpha expected a profit of $2.95 billion on sales of $12.21 billion.

For the year, analysts were expecting core operating income to grow 12% on 8% sales growth.

"Our performance reflects continued strong momentum of our key growth drivers, both in the U.S. and ex-U.S., which has allowed us to upgrade our FY2024 guidance," said Vas Narasimhan, CEO of Novartis, in a statement.

Novartis' results were boosted by key drivers such as its Entresto drug, used to treat heart failure, which saw higher penetration across the U.S. and Europe, and in China, with quarterly sales of $1.89 billion. Sales of its Kesimpta treatment for multiple sclerosis climbed across all regions at $800 million, and psoriasis treatment Cosentyx saw sales of $1.52 billion thanks to U.S. growth.

Up 14% so far this year, shares of Novartis slipped 2.1% in early trading.

-Barbara Kollmeyer

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07-18-24 0351ET

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