Novartis (NYSE: NVS) has released its Q3 2023 financial results, marking the first report since the company sharpened its focus on innovative medicines following the spinoff of Sandoz (SWX: SDZ) earlier this month. The financials reveal a robust performance with net sales reaching USD 34.0 billion for the first nine months, marking a 10% year-on-year (YOY) increase in constant currency terms. Net income saw a significant leap of 41% to USD 5.9 billion, leading Novartis to elevate its core operating income outlook for 2023 from low-to-mid teens to mid-to-high teens.
Blockbuster Performances
Novartis’s portfolio saw strong contributions from several blockbusters between Q1 and Q3. Hypertension therapy Entresto (valsartan + sacubitril) led with USD 4.4 billion in sales over the nine-month period. This was followed by auto-immune disease medicine Cosentyx (secukinumab) at USD 3.7 billion, orphan drug Promacta/Revolade (eltrombopag) at USD 1.7 billion, and both multiple sclerosis (MS) treatment Kesimpta (ofatumumab) and breast cancer therapy Kisqali (ribociclib) achieving USD 1.5 billion each.
Market Growth and Generic Competition
During the earnings conference call, concerns were raised about the impact of generic competition on Novartis’s strong market growth, particularly in China. Specifically, Entresto recently faced a patent challenge from local firm Nanjing F&S Pharmatech Co., Ltd, indicating the potential for generic entrants. CEO Vas Narasimhan acknowledged the likelihood of Entresto entering the volume-based procurement (VBP) program in the future but emphasized that this would be manageable. He also highlighted that future growth will be driven by new product launches, including ongoing contributions from Leqvio and Cosentyx.-Fineline Info & Tech
