Novartis Q3 Results Climb, Despite Generic Erosion In US; Confirms FY25 Outlook

(RTTNews) - Swiss drug major Novartis AG (NVS) reported Tuesday higher net income in its third quarter, benefited by sales growth above market estimates. Looking ahead for fiscal 2025, the company continues to expect core operating income to grow in low-teens and sales to grow in high single-digit.

Vas Narasimhan, CEO of Novartis, said, "Novartis delivered solid financial performance in Q3, more than offsetting the impact of increasing generic erosion in the US.... We remain well on track to achieve our guidance for 2025 and over the mid-term."

In the third quarter, net income attributable to shareholders grew to $3.93 billion from last year's $3.19 billion. Earnings per share climbed to $2.02 from $1.57 a year ago.

Core net income was $4.33 billion or $2.25 per share, compared to $4.13 billion or $2.06 per share in the prior year.

Net sales grew 8 percent to $13.91 billion from last year's $12.82 billion. Net sales grew 7 percent in constant currency rates. The Wall Street analysts on average expected the company to report $13.85 billion in net sales. Analysts' estimates typically exclude special items.

Volume contributed 16 percentage points to growth, while generic competition had a negative impact of 7 percentage points, driven by Promacta, Tasigna and Entresto generics in the US, and pricing had a negative impact of 2 percentage points.

The company noted that sales growth was driven by continued strong execution on priority brands including Kisqali, Kesimpta, Pluvicto and Scemblix.

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