2023-11-28 05:48:31 ET
Novartis ( NYSE: NVS ) has raised its mid-term sales growth target citing strong momentum of key growth drivers, majority of which are de-risked existing brands.
Net sales is now expected to rise at a compound annual growth rate of 5% through 2027, compared to 4% previously. The Swiss drugmaker also expects core operating income margin of ~40%+ by 2027.
"Novartis has now completed its transformation into a 'pure-play' innovative medicines company, delivering robust increases in core margin and free cash flow, while also continuing strong operational performance. We remain committed to executing our focused strategy, and creating significant shareholder value in the short-, mid-, and long-term as illustrated by our upgraded mid-term sales guidance to 5% CAGR and ~40%+ core operating income margin," said CEO Vas Narasimhan.
The target is mainly driven by six currently marketed drugs, with multi-billion dollar potential. Kisqali, Novartis' breast cancer drug, was among the top-selling drugs for the company in Q3 based on increasing recognition of consistent overall survival and quality of life benefits.
Entresto, used in adults with chronic heart failure, also generated bumper sales in the quarter, aided by adoption of guideline-directed medical therapy across regions.
The mid-term target is also underpinned by Novartis' ( NVS ) prostate cancer radiotherapy Pluvicto and Kesimpta, a prescription medicine used to treat relapsing forms of multiple sclerosis.
Overall, Novartis ( NVS ) is confident about mid-single digit percentage sales growth beyond 2027 "based on the foundational strength of de-risked existing brands and pipeline assets."
The announcements were made in conjunction with the company's R&D Investor Event held in London, U.K. today.
More on Novartis
- Novartis AG (NVS) 10th Annual ESG Investor Event Conference (Transcript)
- Sandoz Group: Novartis Spinoff With A Double-Digit EBITDA CAGR Through 2028
- New And Improved Novartis
- Novartis recalls two lots of anti-rejection drug Sandimmune
- Novartis licenses CAR-T candidate from Legend Biotech
For further details see:
Novartis lifts sales growth target to 5% a year through 2027