Novartis
began life without its generic drugs business as it means to go on—with a profit beat and guidance hike.
The Swiss pharmaceutical company said its transition to a pure-play innovative medicines business was now complete following the spinoff of Sandoz, its generic drugs unit, earlier this month. The move puts more pressure on
Novartis
’ (ticker: NVS) pipeline and on the performance of its best-selling drugs.
They certainly seem up to the task at the moment. The company’s key drugs generated strong sales in the third quarter, driving the profit beat. Sales of its multiple sclerosis treatment Kesimpta jumped 124%, while prostate cancer drug Pluvicto’s sales rose 217%.
Earnings per share of $1.74 beat analysts’ estimates of $1.67, according to FactSet. However, net sales of $11.8 billion missed expectations of $12.4 billion.
Novartis hiked its 2023 guidance for a third time. It now expects core operating income to grow by a mid- to high-teen percentage, up from a previous “low double digit to mid teens” growth guidance.
Net sales are expected to grow by a high-single-digit percentage, in line with its initial forecast.
Despite all of that, the U.S.-listed shares pointed 0.9% lower ahead of the open, and the Swiss-listed stock fell 0.6% in early European trading.
It’s a good start after the spinoff but maybe investors need more convincing.
Write to Callum Keown at [email protected]
Read the full article here