By Adria Calatayud
Novartis reported results for the third quarter on Tuesday. Here is what to know:
SALES: The Swiss pharmaceutical giant reported net sales of $11.78 billion for the third quarter, beating analysts’ expectations of $11.62 billion, according to a consensus provided by FactSet and based on estimates by seven analysts. This was up from the $10.49 billion Novartis posted for the third quarter of 2022 from continued operations after the spinoff of its generic-drugs business Sandoz.
CORE NET PROFIT: Novartis’s core net profit was $3.59 billion, exceeding expectations of $3.51 billion, according to the FactSet-provided consensus. For the year-earlier period, core net profit was $3.04 billion.
WHAT WE WATCHED:
–KEY DRUGS: Novartis Chief Executive Vas Narasimhan said key growth drivers including cancer drugs Kisqali and Pluvicto, multiple-sclerosis treatment Kesimpta and hear medicine Entresto are getting a positive market reception. Quarterly sales of Kisqali, Kesimpta and psoriasis treatment Cosentyx beat expectations, but Pluvicto and Entresto were weaker than expected, Barclays analysts said in a research note. Sales of Kisqali jumped 77% at constant currency to $562 million, Kesimpta more than doubled to $657 million and Cosentyx grew 4% to $1.33 billion. Meanwhile, Entresto sales rose 31% at constant currency to $1.49 billion, while revenue from Pluvicto more than tripled to $256 million, Novartis said.
–GUIDANCE: The company raised its earnings guidance for 2023 again, its third outlook upgrade in as many quarters. It now expects core operating income to grow in the mid- to high percentage teens range, having previously forecast growth in the low double digit to mid teens excluding Sandoz. While the outlook has been raised, it is now aligned with current consensus expectations, UBS analysts said in a note.
Write to Adria Calatayud at [email protected]
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