Novartis (SIX:NOVN) reported a strong Q3 2023 performance with a 12% sales growth and a 21% increase in core operating income. The pharmaceutical company also raised its guidance for the third time this year, indicating confidence in its ability to sustain top and bottom-line growth. The company's key growth drivers, including Entresto, Cosentyx, Kesimpta, Kisqali, and Pluvicto, all performed well, contributing to the robust results.
Key takeaways from the earning call include:
- Novartis completed the spin-off of Sandoz (SIX:SDZ), transitioning into a pure-play innovative medicines company.
- The company reported a 50% increase in patient growth for Pluvicto, with expectations for this growth to continue. They are on track to reach $1 billion in sales for Pluvicto this year.
- Novartis is adding additional facilities in Asia in preparation for the launch of Pluvicto in multiple geographies.
- The company closed its acquisition for Chinook and is on track for the Atrasentan readout for IgAN in Q4.
- Novartis reported robust double-digit growth in the Chinese and Japanese markets, driven by the launches of medicines such as Cosentyx and Leqvio.
- The company expects solid growth in international markets in the coming years, primarily due to new launches.
- Novartis has exceeded its guidance this year and remains confident in its ability to drive good growth.
- The company acknowledged potential challenges from generic drugs, loss of exclusivity, and divestments but remains committed to delivering value to shareholders.
During the earnings call, CEO Vas Narasimhan stated that the ORION-4 trial is fully enrolled and on track. He also emphasized the company's focus on genetically targeted drugs and expressed confidence in the approval of PSMAfore based on positive study data.
Novartis also reported positive results from the Phase 3 NETTER-2 trial for Lutathera, which demonstrated significant benefits in earlier disease settings. The company plans to present the data in the first part of next year and aims to educate the medical community on its importance.
The company also discussed its biomedical research strategy, focusing on four therapeutic areas and improving integration between research, development, and commercialization.
Novartis concluded the call by emphasizing its commitment to delivering value to shareholders, despite potential challenges such as currency fluctuations and competition in the radioligand therapy space. The company has built a robust global supply chain and invested in automated production lines to remain competitive in this area. Updates on their progress will be provided at an upcoming R&D Day.
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