Source: Sharecast
Its shares were in the red in early Swiss trading due to weaker-than-expected sales of its heart failure drug, Entresto, and a cancer drug, Pluvicto, which only exceeded estimates because of a one-time gain.
Entresto, Novartis’s top-selling medication, fell short of analyst expectations by 1.4%, raising concerns over the company’s growth in the critical segment.
The company had pursued a strategy focussed on innovation, restructuring its portfolio in recent years, including the spinoff of its Sandoz generics unit in 2022, to concentrate on cutting-edge treatments.
Novartis CEO Vas Narasimhan highlighted efforts to expand production and usage of Pluvicto, aiming to grow its referrals and reach.
While Novartis was still exploring next-generation obesity drugs with fewer side effects and longer dosing intervals, Narasimhan emphasised that the company was not dependent on the burgeoning obesity drug market.
“We feel like we have a full pipeline of medicines in cancer, in immunology, in neuroscience and cardiovascular disease such that we’re not really reliant on the obesity wave,” he said.
Third-quarter core earnings per share climbed to $2.06, above the $1.94 analyst estimate, with sales also surpassing forecasts.
Novartis said it expected core operating income to rise in the high teens percentage-wise for the year, alongside low double-digit sales growth, both at the upper end of its previous guidance.
However, there was a lack of detailed outlook on 2025.
At 0931 CEDT (0831 GMT), shares in Novartis were down 3.3% in Zurich at CHF 96.52.
Reporting by Josh White for Sharecast.com.