What drove the sharp rise in operating profit in Q4 2024?

The sharp rise in operating profit in Q4 2024 can be attributed to several key factors:

1. **Revenue Growth**: Novartis experienced a significant increase in net sales, which grew by 16% in Q4 2024 on a constant currency basis, reaching $13.2 billion. This growth was primarily driven by the strong performance of key products such as Entresto and Cosentyx, which saw sales increase by 34% and 24%, respectively.
2. **Core Operating Income Growth**: The core operating income margin improved by 3.7 percentage points to 36.9% of net sales, indicating enhanced operational efficiency. This improvement was a result of higher net sales and effective cost management.
3. **Innovation and Pipeline Highlights**: Novartis achieved important innovation milestones, including approvals and positive readouts for several assets, which are expected to fuel growth in the mid- to long-term. The company's focus on innovative medicines and its transition to a "pure-play innovative medicines company" have paid off, with key products contributing significantly to revenue growth.
4. **Market Share and Demand**: Novartis gained market share in key therapeutic areas, such as cardiovascular and immunology, which led to increased demand for their products. The company's strategic focus on replacing lost sales due to patent expirations, such as Entresto, has been successful, with strong replacement power evident in the performance of newer drugs like Kesimpta.

In conclusion, the sharp rise in operating profit in Q4 2024 was driven by a combination of revenue growth, improved operating efficiency, innovation, and strategic market positioning. These factors collectively contributed to Novartis' strong financial performance and operational excellence.