Novartis Q3: Earnings Beat, Raised Operating Profit Outlook & More

Novartis AG NVS reported Q3 FY23 sales of $11.78 billion, up 12% Y/Y in reported and constant currency (cc), beating the consensus of $11.40 billion.

Sales growth was mainly driven by a continued strong performance from Entresto, Kesimpta, Pluvicto, Kisqali and Scemblix.

Heart failure drug Entresto sales are up 31% Y/Y in cc at $1.49 billion in the quarter. 

Kesimpta, a new once-a-month injection against multiple sclerosis, quarterly revenues rocketed 124% Y/Y in cc to $657 million.

Sales of the newly launched Pluvicto, a radiotherapy against prostate cancer, were up 217% Y/Y in cc to $256 million on a now unconstrained supply chain and focus on new patients. 

"Our robust pipeline also continues to deliver, and we have achieved important innovation milestones for Pluvicto, iptacopan, remibrutinib and Lutathera. We are confident in our mid-term growth outlook and remain committed to creating value for our shareholders," said Vas Narasimhan MD, CEO.

Also Read: Novartis Precision Cancer Therapy Hits Primary Goal In Rare Type Of Pancreatic Cancer

Core operating profit increased 17% Y/Y to $4.41 billion, with core EPS of $1.74, above the consensus of $1.70.

In nine months of 2023, NVS repurchased shares worth $7.2 billion on the SIX Swiss Exchange's second trading line, which included shares worth $1.1 billion under the new up-to $15 billion share buyback (announced in July 2023). Also, the company bought back $1.2 billion in shares to mitigate dilution related to participation plans of associates.

The company completed the spin-off of Sandoz Group AG SDZNY, which debuted on the SIX Swiss Exchange this month. With regard to this, NVS will report a one-time non-cash, non-taxable IFRS gain of about $5.9 billion as part of discontinued operations in Q4. 

Also See: Novartis Mulls Divesting Some Assets Of Radiopharma Unit In Strategic Shift

Guidance: Novartis reaffirmed its FY23 outlook for revenue growth at a high single digit. On the other hand, it raised core operating income growth guidance to mid to high teens (from low double digits to mid-teens).

Price Action: NVS shares are down 0.90% at $93.84 premarket on the last check Tuesday.