Novartis, a Swiss drugmaker, experienced a significant boost in its stock value after raising its full-year guidance based on better-than-expected first-quarter results. Shares of Novartis climbed as much as 4.8% in early trading on Tuesday, and the company’s net sales rose by 11% in the first three months of the year. Core operating income also saw a substantial increase of 22% over the same period.
Novartis CEO Vas Narasimhan announced that the growth was solid across all major brands, which include popular drugs such as Entresto for heart failure and Cosentyx for psoriasis. Narasimhan expressed his satisfaction with the company’s performance, stating that it was broad-based and covered all key growth brands and geographical regions. As a result, Novartis has decided to revise its full-year guidance for 2024, with net sales expected to increase by a high single- to low double-digit percentage.
In addition to the boost in net sales, Novartis has also adjusted its expectations for core operating income, now anticipating an expansion by a low double-digit to mid-teens percentage. Narasimhan emphasized that the company’s progress in the first quarter extended to advancing its drug pipeline, particularly in the development of treatments for prostate cancer and leukemia. He expressed confidence in Novartis’ mid- and long-term growth outlook, citing the momentum in their business and pipeline as key indicators of future success.
Novartis’ impressive first-quarter performance and optimistic outlook for the future have garnered positive attention from investors and industry analysts alike. With significant increases in net sales and core operating income, along with successful advancements in their drug pipeline, Novartis is well-positioned for continued growth and success in the years to come. Investors can expect further value and innovation from the Swiss drugmaker as they continue to build on their momentum and solidify their position as a leader in the pharmaceutical industry.