Novartis (NVS, Financial) has raised its annual profit forecast for the third consecutive quarter due to strong sales of its blockbuster drugs for psoriasis and cancer. The Swiss pharmaceutical company announced that its core operating profit is expected to grow by 17% to 19% this year, with sales increasing by a low double-digit percentage. Both targets are at the high end of its earlier guidance.
In the third quarter, Novartis reported a 10% year-over-year increase in revenue, surpassing the expected 7% growth. Core earnings per share rose by 20%, exceeding the anticipated 12% rise. Sales for its psoriasis treatment Cosentyx reached $1.69 billion, outperforming analysts' estimates of $1.56 billion. Revenues from cancer drugs Kisqali and the high-profile prostate cancer medication Pluvicto also slightly exceeded expectations.
Following years of strategic shifts, Novartis is now concentrating on growth by streamlining its extensive drug portfolio. However, challenges persist, such as the impact of U.S. Medicare price negotiations, which Novartis recently failed to halt in court.
In a recent move to expand its pipeline, Novartis signed an exclusive licensing agreement with biotech firm Monte Rosa Therapeutics (GLUE.US). The deal, worth $150 million upfront, grants Novartis global rights to develop, produce, and commercialize MRT-6160 and other VAV1-targeted molecular glue degraders (MGDs) for autoimmune diseases. MRT-6160, a VAV1 molecular glue degrader, has shown promising activity in preclinical models of various immune-mediated diseases.
Novartis's stock has risen by 18% this year, outperforming a Bloomberg-tracked index of European pharmaceutical companies, which increased by 13%.
