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Novartis Shares Rise 3.01% on Drug Approvals, Acquisition

Mover TrackerFriday, May 2, 2025 6:22 am ET

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On May 2, 2025, novartis shares rose by 3.01% in pre-market trading, reflecting positive market sentiment towards the company's recent developments and financial performance.

Novartis has made significant strides in expanding the indications for its radioligand therapy, Pluvicto. The drug, which targets prostate-specific membrane antigen (PSMA), has been approved for earlier use in metastatic castration-resistant prostate cancer (mCRPC) patients who have not yet undergone chemotherapy. This expansion is supported by the PSMAfore study, which showed a significant increase in radiographic progression-free survival (rPFS) and a reduction in the risk of disease progression or death.

In addition to its therapeutic advancements, Novartis has also been active in the acquisition front. The company has agreed to acquire regulus therapeutics inc. for up to $1.7 billion. This acquisition is part of Novartis' strategy to enhance its pipeline and leverage Regulus' expertise in microRNA therapeutics, particularly for conditions like autosomal dominant polycystic kidney disease (ADPKD).

Novartis' first-quarter financial results for 2025 were robust, with net sales reaching $13.23 billion, a 15% increase year-over-year. The company's core operating income grew by 27%, driven by strong sales of key brands such as Entresto, Kisqali, and Kesimpta. The company's core operating margin expanded to 42.1%, reflecting efficient cost management and operational improvements.

Novartis continues to invest in research and development, with several new drugs receiving regulatory approvals. These include Pluvicto for mCRPC, Vanrafia for IgA nephropathy, and Fabhalta for C3 glomerulopathy. The company is also advancing multiple pipeline candidates, including Remibrutinib for chronic spontaneous urticaria and OAV101 for spinal muscular atrophy.

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