Novartis' Q2 Earnings: Revenue And EPS Beat, Raises 2024 Profit Forecast On Strong Demand For Key Drugs

Author: Vandana Singh | July 18, 2024 09:06am

Swiss pharma giant Novartis AG (NYSE:NVS) reported a second-quarter adjusted EPS of $1.97, up 21% year over year (+17% on constant currency), beating the consensus of $1.89.

The company’s sales reached $12.51 billion, up 11% year over year and 9% in constant currency, beating the consensus of $12.375 billion.

Also Read: FDA Approves Novartis’ Lutathera As First Therapy For Pediatric Patients With Gastroenteropancreatic Neuroendocrine Tumors.

Sales growth is driven by a strong performance from Entresto, Kesimpta, Cosentyx, Kisqali, Leqvio, and Pluvicto.

The volume contributes 15 percentage points to growth. Generic competition had a negative impact of 2 percentage points, and pricing had a negative impact of 2 percentage points.

The company reported second-quarter operating income of $4.0 billion, up 43% (+47% at constant currency), mainly driven by higher net sales and lower impairments, partly offset by higher R&D investments.

Sales of the heart failure drug Entresto reached $1.89 billion, up 25%, and sales of the psoriasis drug Cosentyx increased by 20% to $1.53 billion.

Cancer drug Pluvicto, hit by supply crunch, reported sales of $345 million, up 44%.

Sales of Kesimpta for multiple sclerosis increased 63% to $799, sales of the breast cancer drug Kisqali increased 45% to $717 million, and sales of the cholesterol-lowering medication Leqvio generated $182 million, up 133%.

Novartis generated an operating cash flow of $4.90 billion and a free cash flow of $4.60 billion in the second quarter.

Guidance: Novartis reaffirms its 2024 net sales growth of high-single to low-double-digit percentage.

The company revised its expectations for core operating income, which is now expected to grow in the mid-to-high-teens percentage range, compared to the prior range of low double-digit to mid-teens.

“We remain on track to achieve our mid-term sales growth (+5% cc CAGR 2023-2028) and margin (40%+ by 2027) guidance,”  commented Vas Narasimhan, CEO.

Price Action: NVS shares are down 3.17% at $108.26 during the premarket session at the last check Thursday.

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Photo via Wikimedia Commons

Posted In: NVS