Swiss pharmaceutical giant Novartis (NYSE: NVS) has reported a 4% year-on-year (YOY) increase in global revenues for the third quarter of 2022, reaching USD 12.54 billion in constant currency terms. However, in dollar terms, sales were down 4% YOY. The growth was driven by both the Innovative Medicines (IM) and Sandoz divisions, each recording a 4% increase.
Innovative Medicines Lead the Way
Sales from Novartis’ Innovative Medicines division reached USD 10.3 billion, with several key products driving core growth. Hypertension therapy Entresto (valsartan + sacubitril) saw a 31% increase in sales, while multiple sclerosis treatment Kesimpta (ofatumumab) surged by 172%. Breast cancer drug Kisqali (ribociclib) recorded a 49% increase, and auto-immune disease drug Cosentyx (secukinumab) grew by 7%. Additionally, the targeted radiopharmaceutical Pluvicto (lutetium Lu 177 vipivotide tetraxetan) for prostate cancer had a strong launch in the US and Europe, generating USD 80 million in Q3 sales.
Emerging Markets and China Expansion
Emerging markets sales grew by 9%, with China contributing significantly by expanding sales by 5% to USD 832 million, despite ongoing COVID-19-related lockdowns during the quarter. CEO Vasant Narasimhan highlighted during the earnings conference call that this progress puts Novartis on track to achieve its target of becoming a top-three player in the China market with USD 4 billion in annual sales by 2024.
Future Growth Drivers in China
Narasimhan emphasized that China is a major growth contributor to Cosentyx’s global performance, although COVID lockdowns impacted patients’ ability to access the drug during Q3. To drive further momentum in China, Novartis is focusing on new drug launches. Among the current drugs under clinical development for China, Narasimhan expects Pluvicto and Leqvio (inclisiran), a cholesterol-lowering drug, to be “significant medicines” once launched.-Fineline Info & Tech
