Novartis, a Swiss pharmaceutical company, saw its shares rise by 4.8% in early trading on Tuesday after announcing better-than-expected first-quarter results. The company raised its full-year guidance, citing strong performance across all major brands.
Financial Performance
During the first three months of the year, Novartis reported a significant increase in net sales, up by 11%. Core operating income also surged by 22% over the same period. CEO Vas Narasimhan expressed satisfaction with the growth, particularly highlighting the success of key products like heart failure drug Entresto and psoriasis drug Cosentyx.
As a result of the robust first-quarter performance, Novartis revised its guidance for the full year. The company now expects net sales in 2024 to grow by a high single- to low double-digit percentage, a significant increase from the previous mid-single-digit growth projection. Similarly, core operating income is anticipated to expand by a low double-digit to mid-teens percentage, compared to the previous forecast of high single-digit growth.
Narasimhan also highlighted the progress made in advancing Novartis’ drug pipeline, particularly in the development of treatments for prostate cancer and leukemia. He expressed confidence in the company’s momentum and long-term growth outlook based on the positive performance in the first quarter.
Overall, Novartis’ strong first-quarter results and revised guidance indicate a positive outlook for the company’s future growth. Investors responded favorably to the news, leading to a significant increase in the company’s stock price. The successful performance of key products and ongoing advancements in the drug pipeline support the company’s confidence in delivering sustained growth in the coming years.