Swiss Pharma Giant Novartis Posts Better-Than-Expected Fourth-Quarter Sales

Novartis AG, the Swiss pharmaceutical giant, reported better-than-expected sales in the fourth quarter of 2023, driven by strong performances from its priority brands and new product launches. The company's net sales rose 16% on a constant currency basis to $13.2 billion, compared to the $12.795 billion estimated by analysts in an LSEG poll. Quarterly adjusted core operating income came in at $4.86 billion versus the $4.23 billion expected. For 2024, net sales rose 12% on a constant currency basis to $50.32 billion, versus $50.47 billion forecasted. Full-year core operating income increased 22% to $19.5 billion versus the $17.02 billion forecasted.

Novartis' strong performance was driven by several key factors:

1. Entresto®: Sales grew by +31% cc, driven by sustained, robust demand and increased patient share across all geographies. This performance outpaced the historical growth rate of +26% in 2023 Q4.
2. Cosentyx®: Sales topped USD 6bn, growing by +25% cc, fueled by new launches and expansion in core indications. This growth was higher than the +21% cc growth in 2023 Q4.
3. Kesimpta®: Sales grew by +49% cc, outpacing both B-cell and MS market growth. This growth was significantly higher than the +73% cc growth in 2023 Q4.
4. Kisqali®: Sales grew by +49% cc, driven by continued strong performance. This growth was higher than the +76% growth in 2023 Q4.
5. Pluvicto®: Sales grew by +42% cc, despite missing estimates in the fourth quarter. This growth was higher than the +25% cc growth in 2023 Q4.
6. Leqvio®: Sales grew by +114% cc, demonstrating strong demand for the new product.

These growth drivers compare favorably to the company's historical performance and industry benchmarks. For instance, the overall sales growth of +12% cc in 2024 was higher than the +8% cc growth in 2023. Additionally, the core operating income margin of 38.7% was higher than the 35.5% margin in 2023, indicating improved operational efficiency.

In comparison to the industry, Novartis' growth in 2024 was stronger than the average growth rate of large-cap pharmaceutical companies, which typically ranges between 5% to 10%. The company's ability to consistently deliver high-growth products and maintain a strong pipeline has contributed to its outperformance in the industry.




In conclusion, Novartis' better-than-expected fourth-quarter sales were driven by strong performances from its priority brands and new product launches. The company's growth in 2024 outpaced both its historical performance and industry benchmarks, demonstrating its ability to consistently deliver high-growth products and maintain a strong pipeline. As the company continues to invest in R&D and expand its geographic reach, it is well-positioned to maintain its competitive edge in the pharmaceutical industry.