Swiss pharmaceutical giant Novartis exceeds expectations with strong growth in the third quarter

Novartis, the renowned pharmaceutical company from Switzerland, reported a strong increase in sales in the third quarter of the year. With revenue of $12.823 billion, the company recorded growth of 9%, surpassing analysts' expectations of $12.76 billion. At constant currency, growth was even 10%, primarily driven by volume growth, which contributed 12 percentage points to the increase. The adjusted earnings per share were also impressive: they rose from $1.74 last year to $2.06, exceeding the forecasted $1.96. The core operating income increased by a good $740 million, reaching $5.15 billion, compared to $4.41 billion in the same period of the previous year. Particularly noteworthy was the free cash flow in the third quarter, which increased by 18% to $6 billion. According to CEO Vas Narasimhan, the growth in all key areas supports the company's momentum, which has not only raised its annual outlook but also shows great optimism in its mid-term outlook. Sales of Cosentyx rose by 27% to $1.69 billion, due to recent market launches and volume growth. The heart medication Entresto also saw a sales increase of 26% to $1.87 billion, particularly due to increased demand in the USA, Europe, and China. Furthermore, sales of the multiple sclerosis drug Kesimpta increased by 28% to $838 million, highlighting the advantage of easy self-administration. In an optimistic forecast for 2024, Novartis expects core operating income growth in the high teens and a sales increase in the low double-digit range, again exceeding expectations.