Core Insights - Novartis reported strong performance in 2025 with high single-digit sales growth and core margin expansion despite facing significant US generic competition [3] - Key growth drivers included Kisqali, Kesimpta, Pluvicto, Scemblix, and Cosentyx, which continued their strong trajectory [3] - The company advanced several potential multi-blockbusters in its pipeline with FDA approvals and positive Phase III readouts [3] - Novartis expects to grow through the largest patent expiry in its history in 2026, indicating the strength of its business [3] Financial Performance - Q4 2025 net sales reached USD 13.3 billion, a 1% increase year-over-year, while full-year net sales were USD 54.5 billion, reflecting an 8% increase [4][13] - Operating income for Q4 was USD 3.6 billion, up 2%, and for the full year, it was USD 17.6 billion, a 21% increase [10][13] - Net income for Q4 was USD 2.4 billion, down 15%, while full-year net income was USD 14.0 billion, up 17% [10][14] - Core operating income for Q4 was USD 4.9 billion, a 1% increase, and for the full year, it was USD 21.9 billion, a 12% increase [11][16] - Free cash flow for Q4 was USD 1.7 billion, down 54%, while for the full year, it was USD 17.6 billion, an 8% increase [12][17] Key Growth Drivers - Priority brands showed strong performance in Q4, with Kisqali sales growing 44%, Kesimpta 27%, Pluvicto 70%, Scemblix 87%, and Cosentyx 11% [18] - The top 20 brands contributed to a total of USD 10.8 billion in Q4 sales, with a slight increase of 2% year-over-year [19] R&D and Innovation - Novartis received FDA approval for Itvisma, the first gene replacement therapy for a broad SMA population, and expanded indications for Scemblix [21] - Pluvicto's FDA submission for metastatic hormone-sensitive prostate cancer was completed based on Phase III data [22] - Ongoing trials for ianalumab showed significant benefits in Sjögren's disease and primary immune thrombocytopenia [23][24] Strategic Initiatives - Novartis announced a proposed acquisition of Avidity Biosciences, expected to close in the first half of 2026, enhancing its pipeline in neuroscience [25] - The company reached an agreement with the US government to lower drug prices, which will impact its 2026 guidance [32] Capital Structure - Novartis repurchased 77.6 million shares for USD 8.9 billion in 2025, reducing the total number of shares outstanding by 66.9 million [27] - Net debt increased to USD 21.9 billion by the end of 2025, primarily due to cash outflows for share repurchases and dividends [28] 2026 Guidance - For 2026, Novartis expects low single-digit growth in net sales and a decline in core operating income [30]

Financial Data and Key Metrics Changes - Total operating loss from continuing operations increased from $6.6 million in 2023 to $6.9 million in 2024 [21] - Research and development expenses rose to $3.7 million in 2024 from $3.4 million in 2023 [21] - General and administrative expenses decreased from $3.5 million in 2023 to $3.2 million in 2024 [21] - Net finance expense decreased from $1.5 million in 2023 to $0.8 million in 2024 [21] - The company's net loss for 2024 was $8.5 million compared to $4.3 million in the previous year [22] - Cash and cash equivalents at year-end 2024 rose to $1 million from $0.7 million at the end of 2023 [24] Business Line Data and Key Metrics Changes - The RNA delivery business continued to gain momentum with two new partners for the X4 platform and improvements in the manufacturing process [6] - The company filed a provisional patent application for circular RNA technology, which could open new collaboration opportunities [12] - Significant progress was made in the development and refinement of nanoparticles for RNA payload delivery [11] Market Data and Key Metrics Changes - The global radiopharmaceutical market reached $8.4 billion in size in 2024 and is expected to grow to $17.1 billion by 2033 [13] Company Strategy and Development Direction - The company plans to spin off a majority of its Swiss subsidiary, Altamira Therapeutics AG, to focus on RNA delivery business [9] - The parent company will become more of a holding company, managing minority stakes in subsidiaries and legacy assets [9] - The company aims to advance at least one flagship program to an investigational new drug IND filing with the FDA in 2026 [14] Management's Comments on Operating Environment and Future Outlook - The delisting from NASDAQ was a significant setback, impacting the ability to raise capital in public markets [27] - The planned partial spin-off and involvement of private equity investors are seen as beneficial alternatives for funding and growth [27] - The company expects operating expenses to decrease significantly following the spin-off [24] Other Important Information - The financial results for 2024 were presented in U.S. dollars for the first time [20] - The company is in discussions with potential partners for its legacy assets, including nasal sprays for allergy and vertigo treatment [19] Q&A Session Summary - No specific questions or answers were documented in the provided content.