Novartis Posts Q4 Earnings and Sales Beat, Shares Gain

Core Insights - Novartis AG reported better-than-expected fourth-quarter results for 2024, with core earnings of $1.98 per share, surpassing the Zacks Consensus Estimate of $1.81 and up from $1.53 a year ago [1][14] - Revenues reached $13.15 billion, a 15% increase year-over-year, and a 16% increase on a constant currency basis, driven by strong sales of key drugs [2][14] - The company’s stock has risen 1.3% over the past year, contrasting with a 1.2% decline in the industry [3] Financial Performance - Novartis reported full-year 2024 sales of $50.3 billion, an 11% increase, which was in line with the company's guidance but slightly below the Zacks Consensus Estimate of $50.5 billion [14] - Core earnings per share for 2024 rose 21% to $7.81, exceeding the Zacks Consensus Estimate of $7.62 [14] Drug Performance - Entresto sales increased 34% to $2.18 billion, driven by strong demand in the U.S. and Europe [6] - Kesimpta sales reached $950 million, up 49%, and Kisqali sales grew 52% to $902 million, both exceeding their respective consensus estimates [9][10] - Cosentyx sales increased 24% to $1.6 billion, although it fell short of the consensus estimate [7] - Leqvio sales surged 83% to $223 million, reflecting strong demand [12] Strategic Updates - Novartis completed the spin-off of its generic and biosimilar unit, Sandoz, in October 2023, allowing the company to focus on four core therapeutic areas [4][5] - The FDA granted accelerated approval to Scemblix for chronic myeloid leukemia, and the European Commission approved Kisqali for a broader indication, which is expected to enhance sales [16][17] - The company is pursuing strategic acquisitions to strengthen its pipeline, including the acquisition of MorphoSys AG and Kate Therapeutics [21][20] Future Guidance - For 2025, Novartis expects net sales to grow in the mid to high single digits and core operating income to grow in high single to low double digits [15]