After Q1 Review, Novartis Narrows R&D Pipeline To Prioritize High-Value Transformative Medicines - Novartis (NYSE:NVS)

In its Q1 FY23 earnings release, Novartis AG NVS announced cutting its pipeline by around 10% as CEO Vas Narasimhan's campaign to turn it into a "pure-play" drugmaker goes full steam.
Novartis raised its full-year sales and profits outlook after solid earnings in the first quarter on the back of a handful of new drugs.
Novartis said its operating profit would likely increase in the high single digits, while group sales are expected to grow in the mid-single digits.
Following a "comprehensive review of R&D projects" during the first quarter of 2023, the pharma giant decided to discontinue or out-license projects for considerations like strategic fit, asset value, commercial potential, and competitive landscape.
According to an investor presentation, Novartis' pipeline will have 136 clinical-stage projects, including two biosimilars.
"We have a clear strategy in five therapeutic areas plus TAX where we house our renal and ophthalmology gene therapy programs," Novartis CEO Vas Narasimhan said in an earnings call.
In September, Novartis said it would focus on five investment areas: cardiovascular, immunology, neuroscience, solid tumors, and hematology medicine.
Prostate cancer drug, Pluvicto saw a strong launch "with demand continuing to exceed supply," which has led to a supply shortage.
Novartis noted that the two new sites were recently approved for production to address the shortage. For 2024 and beyond, it's targeting at least 250,000 doses made annually.
Price Action: NVS shares are up 3.36% at $103.96 on the last check Tuesday.

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