Source: Sharecast
The Swiss pharmaceutical group said net income rose 23% to $3.93bn on sales of $13.91bn, up 7% from a year earlier, while adjusted earnings per share increased 9% to $2.25, just below forecasts.
Core operating income climbed 6% to $5.46bn, held back by generic competition and slower sales in key immunology products.
Entresto, which remains Novartis’ largest product, generated $1.88bn in revenue during the quarter, roughly flat year on year despite generic versions entering the US market in the summer.
Analysts at Vontobel said profitability came in around 2% below consensus, adding that pressure from copycat drugs would persist into the fourth quarter.
Chief executive Vas Narasimhan acknowledged that the erosion in Entresto’s sales would continue, but said newer treatments were offsetting the decline.
Growth was led by oncology and neurology therapies, including breast cancer drug Kisqali, which surged 68% to $1.3bn following expanded approval for early-stage use, and multiple sclerosis medicine Kesimpta, up 44%.
Radiotherapy Pluvicto and leukaemia treatment Scemblix also posted gains of 45% and 95% respectively.
Narasimhan said the company’s recently-approved Rhapsido for chronic spontaneous urticaria and positive phase three data for ianalumab in Sjögren’s disease “could underpin our growth through 2030 and beyond”.
Novartis reaffirmed its full-year guidance for 2025, forecasting high single-digit sales growth and low-teens expansion in core operating income.
The group reported free cash flow of $6.2bn, up 4%, and maintained a core operating margin of 39.3%.
Narasimhan said proposed US tariffs on imported patented drugs would not affect guidance, citing the company’s ongoing investment in five new manufacturing sites in the US.
The company also continued its acquisition drive, unveiling a $12bn deal for Avidity Biosciences to strengthen its position in RNA-based therapies, alongside other recent transactions aimed at replenishing its pipeline as older products lose exclusivity.
At 1130 CET (1030 GMT), shares in Novartis were down 3.37% in Zuruch at CHF 99.68.
Reporting by Josh White for Sharecast.com.
