An office building designed by Frank O. Gehry at the Novartis AG headquarters campus in Basel, Switzerland.
Bloomberg | Getty Images
Swiss pharmaceutical giant Novartis on Friday reported better-than-expected sales in the fourth quarter, but falling short of its own guidance over the full-year stretch.
Fourth-quarter net sales rose 16% on a constant currency basis to $13.2 billion, compared to the $12.795 billion estimated by analysts in an LSEG poll.
Quarterly adjusted core operating income came in at $4.86 billion versus the $4.23 billion expected.
For 2024, net sales rose 12% on a constant currency basis to $50.32 billion, versus $50.47 billion forecasted. Full-year core operating income increased 22% to $19.5 billion versus the $17.02 billion forecasted.
The company said the sales growth was driven primarily by its blockbuster heart-failure drug Entresto and its arthritis medication Cosentyx.
Novartis had raised its 2024 earnings guidance for the third consecutive quarter in October, saying it expected full-year net sales and core operating income to both grow by “high teens” percentages versus the “mid- to high teens” previously forecast.
CEO Vas Narasimhan said the results marked a positive early signal since implementing a strategic overhaul of the business in 2023.
“In our first full year as a pure-play innovative medicines company, Novartis delivered one of the strongest financial performances in our history, growing sales 12% cc (constant currencies) and core operating income 22% cc,” Narasimhan said in a statement accompanying the results.
“With the momentum we are seeing in the business, we expect to continue our strong sales growth with margin expansion in 2025 and we remain on track to deliver on our mid-term guidance,” he said.
Looking ahead, Narasimhan said the company was focused on advancing its development pipeline, including more than 30 assets “with the potential to drive differentiated growth over the long term.”
The company also outlined its guidance for 2025, forecasting net sales will grow by “mid- to high single digits” and core operating income will increase by “high single to low double-digits.”