FRANKFURT – Novartis, the Swiss drugmaker, raised its 2024 earnings guidance on Tuesday for the third time buoyed by wider use of its prescription drugs such as psoriasis and arthritis drug Cosentyx.
Novartis said it expects full-year core operating income, adjusted for one-off items, to grow by a “high teens” percentage, compared with previous guidance of “mid-to high teens”.
The group, which has cut jobs and spun off generic drugs business Sandoz to focus on new drug development, also posted better-than-expected third-quarter earnings, helped by revenue gains from anti-inflammation drug Cosentyx, among other factors.
Lower costs from an organizational overhaul started in 2022 was also continuing to help, CEO Vas Narasimhan said on a media call.
“The changes we’ve made to become a focused pure-play company focused on key therapeutic areas, focused on key geographies, is really working,” he said.
Novartis shares were seen 1.7% higher in pre-market trading ahead of the 0800 GMT market open.
Quarterly adjusted core operating income rose 17% to $5.15 billion, beating an average analyst estimate of more than $4.8 billion.
Quarterly Cosentyx sales rose 27% to $1.69 billion, helped by its recent approval to treat hidradenitis suppurativa, a painful acne-like skin condition.
(Source: Reuters)
