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Novartis Posts Q4 Earnings and Sales Beat, Shares Gain
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Swiss pharma giant Novartis AG (NVS - Free Report) reported better-than-expected results for the fourth quarter of 2024. Core earnings (excluding one-time charges) of $1.98 per share easily beat the Zacks Consensus Estimate of $1.81 and were up from $1.53 reported a year ago. The year-over-year growth was driven by strong growth in sales.
Revenues of $13.15 billion climbed 15% from the year-ago reported figure. On a constant currency basis, sales increased 16%, driven by the momentum in Entresto, Kesimpta, Kisqali, Cosentyx and Leqvio. The top line beat the Zacks Consensus Estimate of $12.97 billion.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Shares are up in response to the quarterly results.
Shares of Novartis have risen 1.3% in the past year against the industry’s decline of 1.2%.
Image Source: Zacks Investment Research
Performance of Top NVS Drugs
All growth rates mentioned below are on a year-over-year basis and at constant exchange rates.
In October 2023, Novartis completed the spin-off of its generic and biosimilar unit, Sandoz, following which the latter became an independent company.
The results of the Sandoz division and selected portions of corporate activities attributable to the Sandoz business are reported as discontinued operations.
With the successful spin-off of the Sandoz business, Novartis operates as a single global operating segment. It now concentrates on four core therapeutic areas — cardiovascular, renal, metabolic, immunology, neuroscience and oncology.
Cardiovascular drug Entresto’s sales rose 34% from the year-ago level to $2.18 billion. The increase was driven by robust, demand-led growth, with increased penetration in the United States and Europe following guideline-directed medical therapy in heart failure, and enhanced penetration in hypertension in China and Japan.
Entresto’s sales comfortably beat the Zacks Consensus Estimate of $2 billion and our model estimate of $1.97 billion.
Cosentyx’s sales (psoriasis, spondylitis and arthritis) increased 24% to $1.6 billion, which missed the Zacks Consensus Estimate of $1.67 billion and our model estimate of $1.69 billion. The year-over-year improvement was driven by recent launches, including the hidradenitis suppurativa indication (HS) and the intravenous formulation (IV) in the United States, and volume growth in core indications.
Kesimpta (multiple sclerosis) sales totaled $950 million, up 49% on increased demand. Kesimpta sales beat the Zacks Consensus Estimate of $889 million and our model estimate of $895.4 million.
Kisqali (breast cancer) maintained its stellar performance, with sales increasing 52% to $902 million. Sales grew strongly across all regions, driven by growth in the United States with strong momentum from the recently launched early breast cancer (eBC) indication.
Kisqali sales beat the Zacks Consensus Estimate of $867 million and our model estimate of $874.2 million.
Strong performances by Jakavi (up 13% to $487 million) and Tafinlar + Mekinist (up 10% to $527 million) also boosted the top line.
Pluvicto (prostate cancer) raked in sales of $351 million, up 28% on solid growth in the United States and Europe. With supply issues solved, Novartis is now focused on increasing its share in established RLT sites while opening new sites and referral pathways and initiating new patients.
Sales missed the Zacks Consensus Estimate of $372 million and our estimate of $401.9 million.
Scemblix sales surged 66% to $207 million, driven by its strong launch uptake in chronic myelogenous leukemia.
Leqvio sales skyrocketed 83% to $223 million on steady growth in demand.
Ilaris sales amounted to $413 million, which increased 11% year over year as sales grew across all regions, led by the United States.
Xolair (asthma and allergies) sales grew 9% year over year to $399 million, driven mainly by emerging growth markets. Novartis has a collaboration agreement with Roche (RHHBY - Free Report) for Xolair. Novartis and Roche co-promote Xolair in the United States.
Luthathera (cancer) sales totaled $190 million, up 30%, as sales grew across all regions due to increased demand and earlier line adoption (within indication) in the United States and Japan.
Tasigna sales declined 6% to $411 million.
Gene-therapy Zolgensma (spinal muscular atrophy) sales of $262 million were down 6%.
Promacta sales totaled $583 million, up 5% year over year.
Full-Year 2024 Results
Novartis reported 2024 sales of $50.3 billion, up 11%, in line with the company’s guidance of growth in low double digits. The figure, however, fell short of the Zacks Consensus Estimate of $50.5 billion.
Core earnings per share of $7.81 rose 21% from 2023 and beat the Zacks Consensus Estimate of $7.62.
2025 Guidance
Net sales are expected to grow in mid to high single digits in 2025. Core operating income is expected to grow in high single to low double digits in 2025.
The FDA granted accelerated approval to Scemblix for adult patients with newly diagnosed Philadelphia chromosome-positive chronic myeloid leukemia in chronic phase (Ph+ CML-CP). The FDA also broadened the indication for Scemblix to include adult patients with previously treated Ph+ CML-CP.
The European Commission approved Kisqali as an adjuvant treatment in combination with an aromatase inhibitor for patients with HR+/HER2- eBC at high risk of recurrence regardless of nodal status, nearly doubling the eligible population.
Kisqali's earlier FDA approval for a broad indication for HR+/HER2- stage II and III eBC at high risk of recurrence approximately doubles the population eligible for CDK4/6 inhibitor adjuvant therapy, with the inclusion of those without nodal involvement.
Our Take on NVS' Performance
Novartis’ performance in the fourth quarter was impressive, driven by strong growth in Entresto, Kesimpta and Kisqali. The guidance for 2025 was encouraging, indicating strong momentum across all key drugs in the upcoming quarters.
The pipeline progress is also encouraging. The approval of Kisqali for eBC should further fuel sales of this drug, which has been boosting the top line. Approval of new drugs and label expansion of existing drugs should enable the company to offset the adverse impacts from generic competition for Tasigna, Promacta and Entresto (mid-2025).
While organic growth continues to drive business, NVS is also focused on strategic bolt-in acquisitions to strengthen its pipeline. Last month, Novartis entered into a global license and collaboration agreement with PTC Therapeutics for the latter’s Huntington's disease candidate to strengthen NVS’ neuroscience pipeline.
In 2024, Novartis acquired MorphoSys AG. The acquisition added pelabresib (late-stage BET inhibitor for myelofibrosis) and tulmimetostat (early-stage dual EZH2 and EZH1 inhibitor for solid tumors or lymphomas) to NVS’ pipeline. The MorphoSys acquisition should further expand its oncology pipeline.
Novartis acquired Kate Therapeutics in November 2024 to strengthen its portfolio of gene therapies.
NVS Rank and Stocks to Consider
Novartis currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the pharma/biotech sector are BioMarin Pharmaceutical (BMRN - Free Report) and Alnylam Pharmaceuticals (ALNY - Free Report) . While BMRN currently sports a Zacks Rank #1 (Strong Buy) each, ALNY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, estimates for BioMarin Pharmaceutical’s 2024 earnings per share have improved from $3.28 to $3.29. Estimates for 2025 earnings per share have decreased from $4.05 to $4.02 during the same timeframe.
BMRN’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 28.7%.
In the past 30 days, estimates for Alnylam Pharmaceuticals’ 2024 loss per share have remained constant at 39 cents. The consensus mark for 2025 earnings per share is currently pegged at 41 cents.
ALNY’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 65.67%.
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Novartis Posts Q4 Earnings and Sales Beat, Shares Gain
Swiss pharma giant Novartis AG (NVS - Free Report) reported better-than-expected results for the fourth quarter of 2024. Core earnings (excluding one-time charges) of $1.98 per share easily beat the Zacks Consensus Estimate of $1.81 and were up from $1.53 reported a year ago. The year-over-year growth was driven by strong growth in sales.
Revenues of $13.15 billion climbed 15% from the year-ago reported figure. On a constant currency basis, sales increased 16%, driven by the momentum in Entresto, Kesimpta, Kisqali, Cosentyx and Leqvio. The top line beat the Zacks Consensus Estimate of $12.97 billion.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Shares are up in response to the quarterly results.
Shares of Novartis have risen 1.3% in the past year against the industry’s decline of 1.2%.
Image Source: Zacks Investment Research
Performance of Top NVS Drugs
All growth rates mentioned below are on a year-over-year basis and at constant exchange rates.
In October 2023, Novartis completed the spin-off of its generic and biosimilar unit, Sandoz, following which the latter became an independent company.
The results of the Sandoz division and selected portions of corporate activities attributable to the Sandoz business are reported as discontinued operations.
With the successful spin-off of the Sandoz business, Novartis operates as a single global operating segment. It now concentrates on four core therapeutic areas — cardiovascular, renal, metabolic, immunology, neuroscience and oncology.
Cardiovascular drug Entresto’s sales rose 34% from the year-ago level to $2.18 billion. The increase was driven by robust, demand-led growth, with increased penetration in the United States and Europe following guideline-directed medical therapy in heart failure, and enhanced penetration in hypertension in China and Japan.
Entresto’s sales comfortably beat the Zacks Consensus Estimate of $2 billion and our model estimate of $1.97 billion.
Cosentyx’s sales (psoriasis, spondylitis and arthritis) increased 24% to $1.6 billion, which missed the Zacks Consensus Estimate of $1.67 billion and our model estimate of $1.69 billion. The year-over-year improvement was driven by recent launches, including the hidradenitis suppurativa indication (HS) and the intravenous formulation (IV) in the United States, and volume growth in core indications.
Kesimpta (multiple sclerosis) sales totaled $950 million, up 49% on increased demand. Kesimpta sales beat the Zacks Consensus Estimate of $889 million and our model estimate of $895.4 million.
Kisqali (breast cancer) maintained its stellar performance, with sales increasing 52% to $902 million. Sales grew strongly across all regions, driven by growth in the United States with strong momentum from the recently launched early breast cancer (eBC) indication.
Kisqali sales beat the Zacks Consensus Estimate of $867 million and our model estimate of $874.2 million.
Strong performances by Jakavi (up 13% to $487 million) and Tafinlar + Mekinist (up 10% to $527 million) also boosted the top line.
Pluvicto (prostate cancer) raked in sales of $351 million, up 28% on solid growth in the United States and Europe. With supply issues solved, Novartis is now focused on increasing its share in established RLT sites while opening new sites and referral pathways and initiating new patients.
Sales missed the Zacks Consensus Estimate of $372 million and our estimate of $401.9 million.
Scemblix sales surged 66% to $207 million, driven by its strong launch uptake in chronic myelogenous leukemia.
Leqvio sales skyrocketed 83% to $223 million on steady growth in demand.
Ilaris sales amounted to $413 million, which increased 11% year over year as sales grew across all regions, led by the United States.
Xolair (asthma and allergies) sales grew 9% year over year to $399 million, driven mainly by emerging growth markets. Novartis has a collaboration agreement with Roche (RHHBY - Free Report) for Xolair. Novartis and Roche co-promote Xolair in the United States.
Luthathera (cancer) sales totaled $190 million, up 30%, as sales grew across all regions due to increased demand and earlier line adoption (within indication) in the United States and Japan.
Tasigna sales declined 6% to $411 million.
Gene-therapy Zolgensma (spinal muscular atrophy) sales of $262 million were down 6%.
Promacta sales totaled $583 million, up 5% year over year.
Full-Year 2024 Results
Novartis reported 2024 sales of $50.3 billion, up 11%, in line with the company’s guidance of growth in low double digits. The figure, however, fell short of the Zacks Consensus Estimate of $50.5 billion.
Core earnings per share of $7.81 rose 21% from 2023 and beat the Zacks Consensus Estimate of $7.62.
2025 Guidance
Net sales are expected to grow in mid to high single digits in 2025. Core operating income is expected to grow in high single to low double digits in 2025.
Novartis AG Price, Consensus and EPS Surprise
Novartis AG price-consensus-eps-surprise-chart | Novartis AG Quote
Key Updates From NVS
The FDA granted accelerated approval to Scemblix for adult patients with newly diagnosed Philadelphia chromosome-positive chronic myeloid leukemia in chronic phase (Ph+ CML-CP). The FDA also broadened the indication for Scemblix to include adult patients with previously treated Ph+ CML-CP.
The European Commission approved Kisqali as an adjuvant treatment in combination with an aromatase inhibitor for patients with HR+/HER2- eBC at high risk of recurrence regardless of nodal status, nearly doubling the eligible population.
Kisqali's earlier FDA approval for a broad indication for HR+/HER2- stage II and III eBC at high risk of recurrence approximately doubles the population eligible for CDK4/6 inhibitor adjuvant therapy, with the inclusion of those without nodal involvement.
Our Take on NVS' Performance
Novartis’ performance in the fourth quarter was impressive, driven by strong growth in Entresto, Kesimpta and Kisqali. The guidance for 2025 was encouraging, indicating strong momentum across all key drugs in the upcoming quarters.
The pipeline progress is also encouraging. The approval of Kisqali for eBC should further fuel sales of this drug, which has been boosting the top line. Approval of new drugs and label expansion of existing drugs should enable the company to offset the adverse impacts from generic competition for Tasigna, Promacta and Entresto (mid-2025).
While organic growth continues to drive business, NVS is also focused on strategic bolt-in acquisitions to strengthen its pipeline. Last month, Novartis entered into a global license and collaboration agreement with PTC Therapeutics for the latter’s Huntington's disease candidate to strengthen NVS’ neuroscience pipeline.
In 2024, Novartis acquired MorphoSys AG. The acquisition added pelabresib (late-stage BET inhibitor for myelofibrosis) and tulmimetostat (early-stage dual EZH2 and EZH1 inhibitor for solid tumors or lymphomas) to NVS’ pipeline. The MorphoSys acquisition should further expand its oncology pipeline.
Novartis acquired Kate Therapeutics in November 2024 to strengthen its portfolio of gene therapies.
NVS Rank and Stocks to Consider
Novartis currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the pharma/biotech sector are BioMarin Pharmaceutical (BMRN - Free Report) and Alnylam Pharmaceuticals (ALNY - Free Report) . While BMRN currently sports a Zacks Rank #1 (Strong Buy) each, ALNY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, estimates for BioMarin Pharmaceutical’s 2024 earnings per share have improved from $3.28 to $3.29. Estimates for 2025 earnings per share have decreased from $4.05 to $4.02 during the same timeframe.
BMRN’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 28.7%.
In the past 30 days, estimates for Alnylam Pharmaceuticals’ 2024 loss per share have remained constant at 39 cents. The consensus mark for 2025 earnings per share is currently pegged at 41 cents.
ALNY’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 65.67%.