Swiss pharmaceutical giant Novartis (NYSE: NVS) has released its financial results for Q4 and the full-year 2022. Global net sales declined 2% year-on-year (YOY) in US dollar terms but increased 4% in constant currency terms to USD 50.545 billion. In Q4, sales expanded by 3% YOY to USD 12.69 billion. CEO Vas Narasimhan highlighted the company’s progress toward becoming a “pure-play innovative medicines company,” driven by six multi-billion-dollar brands that accounted for 32% of Innovative Medicines sales and grew 26% over the year. The planned spin-off of the generics unit Sandoz remains on track for completion in H2 2023.
Q4 Performance: Innovative Medicines and Key Products
In Q4, Innovative Medicines generated USD 10.4 billion in net sales, with growth restrained by generic competition against legacy products. Sandoz’s sales remained flat at 0% YOY, totaling USD 2.3 billion. Key growth drivers for Novartis included:
- Entresto (valsartan + sacubitril), a heart failure/hypertension therapy, with sales of USD 1.291 billion, up 44% YOY;
- Kesimpta (ofatumumab), a multiple sclerosis treatment, at USD 369 million, up 157% YOY;
- Kisqali (ribociclib), a breast cancer drug, at USD 357 million, up 33% YOY;
- Cosentyx (secukinumab), an auto-immune disease drug, with USD 1.08 billion in sales, down 9% in Q4 due to a higher-than-expected Medicaid patient mix in the US and COVID-19 disruptions in China. For the full year, Cosentyx sales grew 5% YOY;
- Pluvicto (lutetium Lu 177 vipivotide tetraxetan), a targeted radiopharmaceutical for prostate cancer, which generated USD 179 million in sales.
Generic competition impacted the sales of Gilenya (fingolimod), Afinitor/Votubia (everolimus), and Gleevec/Glivec (imatinib), resulting in a 5-percentage-point negative impact during the quarter.
China Market Performance
Emerging Markets saw a 5% YOY sales increase in Q4, driven by growth in regions outside the US, Canada, Western Europe, Japan, Australia, and New Zealand. However, China sales dipped 2% YOY to USD 581 million due to COVID-19-related lockdowns. Over the full year, China sales grew 6% to USD 581 million. China, a “priority geography” for Novartis alongside Germany, Japan, and the US, is expected to see accelerated growth in H2 2023.
Upcoming Developments in China
Novartis is focused on launching Kisqali (ribociclib), a CDK4/6 inhibitor recently approved in January for HR+/HER2- breast cancer. The company is also preparing for the anticipated approval of Leqvio (inclisiran), a hypercholesterolemia therapy, with a regulatory decision expected in H2 2023.-Fineline Info & Tech
