Novartis Raises Guidance on Profit, Sales Growth

By Helena Smolak

Novartis lifted its full-year guidance after first-quarter profit and sales rose and beat consensus expectations, boosted by strong sales of key drugs.

The Swiss pharmaceutical major said Tuesday that it now projects net sales in 2024 to grow in the high-single to low double-digit range, after previously guiding for growth in the mid-single-digit percentage range.

Novartis now expects core operating income growth in the low double-digit to mid-teens range, having previously expected high single-digits growth.

Its core operating profit--one of its preferred earnings metrics, which strips out exceptional items--rose 16% on year in the first quarter to $4.54 billion, excluding its former generics drugs business Sandoz, which was spun-off last October.

Sales climbed to $11.83 billion from $10.80 billion, excluding Sandoz. Strong growth in sales of the company's Entresto heart drug and Cosentyx psoriasis treatment, which both topped $1 billion in quarterly revenue, helped the top line.

Analysts polled by Visible Alpha had forecast the company's first-quarter core operating profit at $4.245 billion and sales at $11.38 billion.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

April 23, 2024 01:39 ET (05:39 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.