Novartis(US:NVS) Zhi Tong Cai Jing·2026-02-04 07:54Core Viewpoint - Novartis reported its Q4 2025 earnings, showing a revenue of $13.34 billion, a 1.4% year-over-year increase, but $740 million below expectations. The company anticipates a profit decline this year due to generic competition impacting its blockbuster drugs like Entresto [1][2]. Group 1: Financial Performance - Q4 revenue was $13.34 billion, reflecting a 1.4% year-over-year growth, but fell short of expectations by $740 million [1]. - Non-GAAP earnings per share were $2.03, exceeding expectations by $0.03 [1]. - The company expects core operating profit to decline by a low single-digit percentage when adjusted for constant currency [1]. Group 2: Strategic Initiatives - CEO Vas Narasimhan is focusing on innovative drug strategies, which will be tested this year due to competition from generics affecting Entresto and other established drugs [1]. - Novartis is launching a new pill for autoimmune skin diseases and will soon announce key data for experimental therapies targeting heart disease and multiple sclerosis [1]. - To drive growth, Novartis agreed to acquire Tourmaline Bio for a promising therapy to reduce systemic inflammation and made a significant acquisition of Avidity Biosciences for up to $12 billion [2]. Group 3: Market Position and Future Plans - Novartis has addressed some uncertainties regarding its U.S. business by reaching an agreement with the Trump administration to avoid new industry tariffs in exchange for price reductions [2]. - The company has committed to building seven new manufacturing facilities in the U.S. as part of a $23 billion investment to expand its manufacturing capabilities, primarily focusing on radioligand therapy [2].