Novartis AG ((NVS)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Novartis AG’s recent earnings call highlighted a robust financial performance, characterized by significant growth across key segments, including Entresto, Cosentyx, and Kisqali. Despite the challenges posed by potential generic entries and a delay in the OAV101 IT study, the overall sentiment of the call was optimistic, underscoring the company’s strong achievements and ongoing growth momentum.
Strong Overall Financial Performance
Novartis reported impressive financial results for Q4 2024, with a 16% sales growth and a 29% increase in core operating income in constant currency. The full-year figures were equally strong, featuring a 12% sales growth and a 22% rise in core operating income, achieving a margin of 38.7%. These results reflect the company’s effective strategies and robust market presence.
Entresto Achievements
Entresto emerged as a major growth driver for Novartis, achieving $7.8 billion in sales for the full year, a 31% increase. U.S. sales surged by 41%, bolstered by significant performance in heart failure and hypertension markets in China and Japan, underscoring its global reach and impact.
Cosentyx Performance
Cosentyx maintained its upward trajectory, with sales surpassing $6 billion for the full year, growing 25%. The U.S. market saw a 36% increase, driven by successful new launches in HS and IV, highlighting the product’s expanding therapeutic applications.
Kesimpta Growth
Kesimpta recorded a remarkable 49% growth, reaching $3.2 billion in full-year sales. The U.S. market contributed significantly with a 42% increase, while international markets grew at 67% in constant currency, indicating strong global demand.
Kisqali Sales Increase
Kisqali’s sales grew by 49% for the full year, reaching $3 billion. The product witnessed substantial growth in metastatic and early breast cancer settings, reinforcing its position as a key player in oncology.
Pluvicto Expansion
Pluvicto delivered $1.4 billion in full-year sales, with a 42% growth in constant currencies. The focus remains on expanding the PSMAfore launch, which is expected to drive further growth in the coming years.
Leqvio and Scemblix Growth
Leqvio demonstrated a significant 114% growth in constant currency for the full year. Meanwhile, Scemblix grew 68%, establishing itself as a market leader in the third-line CML setting, reflecting successful strategic positioning.
Pipeline and Innovation Progress
Novartis made noteworthy advancements in its pipeline, with key approvals and ongoing developments aimed at sustaining growth momentum into the next decade. This progress highlights the company’s commitment to innovation and long-term growth.
Potential Generic Entries
The company anticipates potential generic entries for Entresto, Tasigna, and Promacta in the U.S. in mid-2025, which could impact its financial performance. This underscores the importance of strategic planning to mitigate these potential challenges.
OAV101 IT Study Delay
The STEER study for OAV101 IT experienced a delay due to event rate modeling, with results now expected in the first half of 2025. This delay poses a challenge but is being managed to minimize impact on the company’s timelines.
Forward-Looking Guidance
Novartis’s forward-looking guidance remains optimistic, with expectations of continued growth. The company projects a 5% plus sales guidance out to 2029 and mid-single-digit growth in the long term. Despite potential impacts from generic entries, Novartis anticipates mid to high single-digit sales growth and high single to low double-digit core operating income growth for 2025, driven by key products like Entresto, Cosentyx, Kesimpta, and Kisqali.
In conclusion, Novartis’s earnings call conveyed a positive outlook, marked by strong financial performance and growth across key segments. While challenges such as potential generic entries and study delays exist, the company’s strategic initiatives and product successes provide confidence in its continued trajectory of growth.
