Will Key Drugs Maintain Momentum for Novartis in Q2 Earnings?

Core Insights - Novartis AG is set to report its second-quarter 2025 results on July 17, with revenue expectations at $14.04 billion and earnings at $2.38 per share [1] - The company has a strong earnings surprise history, beating estimates in the last four quarters with an average surprise of 7.12% [1] Earnings Prediction - The Earnings ESP for Novartis is -0.28%, indicating a lower likelihood of an earnings beat this quarter [3] - The company currently holds a Zacks Rank of 2 (Buy) [3] Growth Drivers - Novartis operates in four core therapeutic areas: cardiovascular-renal-metabolic, immunology, neuroscience, and oncology following the spin-off of the Sandoz business [4] - Key products driving growth include Entresto, Kisqali, Kesimpta, Leqvio, and Scemblix, with strong sales expected in Q2 [4][8] Product Performance - Entresto's sales are estimated at $2.3 billion, benefiting from increased demand in China and Japan [5] - Kisqali's sales are projected at $1 billion, driven by its recognition in breast cancer treatment [6][7] - Kesimpta's sales are also expected to reach $1 billion, reflecting increased demand [7] - Cosentyx is anticipated to generate sales of $1.73 billion, supported by recent launches and volume growth [9] - Leqvio's sales estimates are $284 million, indicating strong growth in cholesterol management [10] - Pluvicto's sales are projected at $410 million, bolstered by FDA approval for expanded use [11] - Scemblix continues to see growth in chronic myeloid leukemia treatment, with strong demand expected [12] Recent Developments - Novartis acquired Regulus Therapeutics for $0.8 billion, adding farabursen to its pipeline, which targets autosomal dominant polycystic kidney disease [14] - Year-to-date, Novartis shares have increased by 27.3%, significantly outperforming the industry average of 1.8% [15]