Novartis AG (NYSE:NVS) reported first-quarter 2025 adjusted earnings per share of $2.28, beating the street view of $2.10.
Quarterly sales of $13.23 billion marginally outpaced the analyst consensus estimate of $13.12 billion.
Quarterly net sales grew 12% (+15% at constant currency), with volume contributing 15 percentage points to growth.
Heart failure drug Entresto sales grew 22% at constant currency to $2.26 billion, driven by demand-led growth in China and Japan, with increased penetration in hypertension.
Cosentyx sales jumped 18% at constant currency to $1.53 billion in the quarter. Sales grew mainly in the US, emerging growth markets, and Europe, driven by recent launches and volume growth in core indications.
Sales of the multiple sclerosis drug Kesimpta reached $899 million, up 43% at constant currency. Novartis said sales grew mainly in the US, emerging growth markets, and Europe, driven by recent launches and volume growth in core indications.
Kisqali sales increased 56% cc to $956 million, including +87% growth in the U.S., with strong momentum from the recently launched early breast cancer indication and continued share gains in metastatic breast cancer.
Also Read: Novartis Commits $23 Billion To Expand US Manufacturing Over Five Years, Despite Tariffs Uncertainties.
Core operating income was $5.6 billion, up 23% (+27% at constant currency), mainly driven by higher net sales.
Outlook: For fiscal year 2025, Novartis expects Net sales to grow in the high single digits compared to the mid-to-high single digits expected earlier.
2025 core operating income is expected to grow in the low double digits, compared to the high single to low double digits forecasted earlier.
"We assume Tasigna, Promacta, and Entresto US generic entry mid-2025 for forecasting purposes," Novartis said in the release.
Reuters cited CEO Vas Narasimhan, who said the company had historically expanded capacity in Europe and other regions to serve the U.S.
“We now want to ensure that 100% of the demand of our key products in the U.S. is produced in the U.S.,” Reuters noted, citing Narasimhan in a media call, declining to provide details on volumes.
"Even in this I think complex geopolitical environment, we feel confident we can deliver now this upgraded guidance," Narasimhan told CNBC's Squawk Box Europe.
Price Action: Novartis stock is up 0.51% at $113.20 at the last check Tuesday.
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