Novartis Raises Guidance on Profit, Sales Growth — Update
By Helena Smolak
Novartis lifted its full-year guidance after first-quarter profit and sales rose and beat consensus expectations, boosted by strong sales of key drugs.
The Swiss pharmaceutical major said Tuesday that it now projects net sales in 2024 to grow in the high-single to low-double-digit percentage range, after previously guiding for growth in the mid-single-digit range.
Novartis now expects core operating income growth in the low double-digit to mid-teens range, having previously expected high single-digit growth.
At 0730 GMT, Novartis shares rose 4.6% to CHF91.52, their highest percentage growth year to date. The stock fell 2.1% over the past three months.
Its core operating profit--one of its preferred earnings metrics, which strips out exceptional items--rose 16% on year in the first quarter to $4.54 billion, excluding its former generics drugs business Sandoz, which was spun-off last October.
Sales climbed to $11.83 billion from $10.80 billion, excluding Sandoz. Strong growth in sales of the company's Entresto heart drug and Cosentyx psoriasis treatment, which both topped $1 billion in quarterly revenue, helped the top line.
Analysts polled by Visible Alpha had forecast the company's first-quarter core operating profit at $4.245 billion and sales at $11.38 billion.
Sales of its prostate-cancer drug Pluvicto climbed 47% to $310 million in the first quarter due to restored supply chains but missed analysts' expectations of $321.1 million, according to a Visible Alpha-compiled consensus.
Novartis aims to open new production sites for Pluvicto and expects continued sales growth in the U.S. throughout the year and additional growth in Europe in the second half, Chief Financial Officer Harry Kirsch said in a press call.
Write to Helena Smolak at helena.smolak@wsj.com
(END) Dow Jones Newswires
April 23, 2024 04:20 ET (08:20 GMT)
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