Novartis continues strong momentum with double-digit sales growth, robust margin expansion and multiple approvals in Q1

Core Insights - Novartis reported a strong start to Q1 2025 with a 15% increase in sales and a 27% rise in core operating income, driven by key brands and innovation milestones [2][6][8] - The company achieved significant growth in priority brands, with notable performances from Kisqali, Kesimpta, and Leqvio, which are expected to drive growth through 2030 [2][6][12] - Novartis raised its full-year 2025 guidance, expecting high single-digit sales growth and low double-digit growth in core operating income [6][24] Financial Performance - Net sales reached USD 13.2 billion, a 12% increase year-over-year, with a 15% increase in constant currencies [8][27] - Core operating income was USD 5.6 billion, up 23%, with a core operating income margin of 42.1% [10][27] - Free cash flow increased by 66% to USD 3.4 billion, reflecting higher net cash flows from operating activities [11][27] Key Growth Drivers - Major contributors to sales growth included Entresto (+22% cc), Kisqali (+56% cc), and Leqvio (+72% cc) [6][12][15] - The top 20 brands collectively generated USD 10.8 billion in sales, reflecting a 17% increase [15][27] - The company continues to focus on expanding its presence in priority markets such as the US, China, Germany, and Japan [5][12] Innovation and R&D - Novartis achieved several innovation milestones, including FDA approvals for Pluvicto, Vanrafia, and Fabhalta [6][16] - The company is advancing its pipeline with global submissions for remibrutinib and ongoing trials for OAV101 IT, showing promising results [17][19] - The acquisition of Anthos Therapeutics aligns with Novartis' strategy to enhance its cardiovascular portfolio [19] Capital Structure and Shareholder Returns - In Q1 2025, Novartis repurchased 24.8 million shares for USD 2.6 billion as part of a larger share buyback program [21] - Net debt increased to USD 22.3 billion, primarily due to dividend payments and share repurchases [22] - The company maintains a strong capital structure with a focus on shareholder returns [20][22]