Novartis Achieves 11% Sales Growth with Strong Performance in Heart Failure, Immune Drugs, and R&D in Q2

Novartis’ second-quarter 2024 financial report revealed strong sales growth and core profit expansion. The company achieved net sales of $12.512 billion, up 11% year-over-year. Core operating income reached $4.953 billion, growing by 19%, and core earnings per share (EPS) hit $1.97, a 21% increase from last year.

Novartis Enforces Patents to Extend Market Presence Amid Mid-2025 Exclusivity Loss

In the second quarter, Novartis exhibited robust financial growth, with sales rising by 11% in constant currency and core operating income increasing by 19%. The core margin reached 39.6%, reflecting the impact of productivity programs and strong sales performance. Key innovations included the Scemblix FDA submission for first-line chronic myeloid leukemia (CML), updated Kisqali NATALEE data bolstering Kisqali’s profile in early breast cancer, and the atrasentan submission for renal diseases. These advancements contributed to an upgraded full-year 2024 core operating income guidance.

The quarter’s growth was widespread, driven by significant contributions from major products. Kesimpta and Kisqali demonstrated strong performances, while Cosentyx benefited from recent launches. Pluvicto and Leqvio also showed solid growth, and Scemblix experienced a 37% increase in constant currency. Entresto achieved notable 28% growth, exceeding expectations for peak sales of USD 7 billion. This growth stemmed from strong demand globally, with a 25% increase in US weekly TRx and 30% growth outside the US, including China and Japan. Despite a projected mid-2025 loss of exclusivity, Novartis continues to enforce patents to extend the brand’s market presence.

Key Product Performances and Strategic Developments

Cosentyx saw a 22% increase in the quarter, driven by new launches and a 34% growth in the US market, though non-US growth was 10%, with temporary pricing effects in Germany. The drug remains a leader in IL-17 treatments, showing strong results in psoriasis, PsA, and AS. Kesimpta achieved 65% growth, treating over 100,000 patients worldwide, with significant gains in both the US and international markets. Kisqali grew by 50% in the metastatic setting and is preparing for an early breast cancer launch, supported by updated NATALEE data.

Pluvicto demonstrated a steady 44% growth, with a market share of mid-30% in the VISION population. Increased promotional efforts and a patient-ready dose are expected to drive future growth, with the PSMAfore FDA submission on track for the latter half of the year. Leqvio experienced a 134% growth, bolstered by increasing acceptance of its biannual cholesterol-lowering treatment and expanding to 35 countries. Scemblix maintained its leadership in the third-line CML setting, with an ongoing FDA submission for first-line CML and a peak sales forecast exceeding USD 3 billion.

The renal portfolio showed promise with atrasentan and iptacopan demonstrating significant reductions in proteinuria. Atrasentan is anticipated for a 2025 launch, while iptacopan is set for a second-half 2024 filing. Novartis will continue focusing on innovation, aiming for 10 positive Phase III readouts in 2023, with significant advancements expected, including the remibrutinib CSU filing shift to 2025.

Strong Core Product Growth, Multiple Regulatory Approvals, and Future Developments

The main growth driver was the outstanding performance of several core products. Sales of Entresto, a heart failure treatment, reached $1.898 billion, a 28% increase year-over-year. Additionally, Kesimpta, an immunosuppressant, and Cosentyx, a treatment for autoimmune diseases, saw sales rise by 65% and 22%, respectively. Sales of Kisqali (breast cancer treatment) and Leqvio (high cholesterol treatment) grew by 50% and 134%, respectively.

In research and development, Novartis received multiple regulatory approvals. The company gained approval for Fabhalta (treatment for paroxysmal nocturnal hemoglobinuria) and Lutathera (treatment for gastroenteropancreatic neuroendocrine tumors). Furthermore, the FDA granted landmark approvals for Scemblix (treatment for chronic granulocytic leukemia) and Atrasentan (treatment for IgA nephropathy).

Author

Bernice Lottering