The pharmaceutical company Novartis has also grown sharply in the final quarter of 2024.
The company achieved its own targets that were increased again in October. The shareholders should receive more dividends. The company announced further growth for the new year – despite the expected competition by generics for some medication.
All of this was well received on the stock exchange.
Novartis cut better than analysts thought. The goals for the new year were also well received. The share rose by 3.4 percent to CHF 96.95 on Friday morning. The share has continued its upward movement since the end of December. At all levels, Novartis exceeded expectations, it said from the Bank Vontobel. An analyst by Octavian was meanwhile positively surprised by the “extraordinarily strong” operational development. The ZKB also referred to the unexpected tailwind in the final quarter through price adjustments. The outlook is four percent above the consensus in terms of sales and adjusted operational profit.
In the current year, Novartis is striving for growth again at constant exchange rates. Sales at Group level in the medium to high single -digit percentage area should increase, as the company announced on Friday morning in Basel. An increase in the high single -digit to deep double -digit percentage range is sought for the operational core profit. In 2025, the pharmaceutical company should be confronted with the first imitators for the means of Tasigna, Promacta and Entresto.
With regard to the Blockbuster Entresto – Novartis – in 2024, a good $ 7.8 billion implemented it – you will do everything possible to protect and defend the patents, said CFO Harry Kirsch in an interview with journalists. The forecast for the current year has already taken into account this, Kirsch continues. So while the first half of the year could run at a similar pace as recently, growth in the second half of the year should weaken somewhat.
Between October and December, Novartis increased sales by 15 percent to $ 13.2 billion (around EUR 12.7 billion), as the company announced. At constant exchange rates, there was an increase of 16 percent, which accelerated growth compared to the third quarter (+10 percent). The growth was once again carried by the heart agent Entresto, Kesimpta (multiple sclerosis), Kisqali (breast cancer), Cosentyx (among other things psoriasis) and Leqvio (cholesterol). They all recorded in two -digit sales increases.
Operatively, Novartis earned $ 3.5 billion in the final quarter and thus 37 percent more. The group win rose from $ 2.6 billion to $ 2.8 billion. For analysts, however, the core operating profit adjusted for various influences is more important. At 4.9 billion, it fell better in the fourth quarter than the consensus of almost $ 4.5 billion.
In the entire financial year 2024, sales rose by 11 percent to $ 50.3 billion. Current -adjusted resulted in an increase of 12 percent. The company thus achieves the net growth in the low double -digit percentage range. The bottom line was that an annual profit of almost $ 12 billion remained after $ 8.6 billion in the previous year. The shareholders should receive a dividend increased to CHF 3.50 of CHF 3.50.
Novartis Finance chief initially expects stronger biosimilar influence
The pharmaceutical company Novartis looks back on a strong fourth quarter. The Basler promises further growth for the current financial year 2025. However, from the middle of the year, it is also expected that the first imitators will come onto the market for important medicines such as the heart remedy Entresto.
Both Entresto and the other two medicines Tasigna and Promacta are so -called small molecules, explains CFO Harry Kirsch on Friday in an interview with journalists after the number template. “With these molecules, it is usually the case that sales erosion is very rapid at the beginning when the first imitators come onto the market.”
In 2024, especially with a view to the Blockbuster Entresto – Novartis, a good $ 7.8 billion (around 7.5 billion euros) implemented – if you will be able to protect and defend the patents, adds the manager.
The forecast for the current year has already taken into account this, Kirsch continues. So while the first semester could run at a similar pace as recently, growth in the second half of the year should weaken somewhat.
Overall, the head of finance and CEO VAS Narasimhan are very satisfied with the performance in 2024. Novartis has achieved the best financial results in its history in his first year as a focused pharmaceutical company, says Narasimhan.
And Novartis will continue to grow. For example, the group confirmed its medium -term goals. These provide for average sales growth of 5 percent by 2029. The operational core winning margin is expected to exceed the 40 percent mark by 2027.
The Novartis share temporarily gains 3.30 percent in Six trading to CHF 96.90.
Basel (dpa-AfX)
Selected leverage products on Novartis
With knock-outs, speculative investors can participate disproportionately in price movements. Simply choose the desired lever and we will show you suitable open-end products on Novartis
The lever must be between 2 and 20
Advertising