Novartis is starting the year on a strong note as several of its core medicines beat Wall Street’s sales projections, prompting the drugmaker to shift its full-year guidance to a higher bar.
In the first three months of 2025, the company’s net sales increased by 15% to $13.2 billion, beating Wall Street’s consensus of around $13 billion, the Swiss pharma said in a Tuesday
release
.
With that, Novartis now expects net sales in 2025 to grow by high-single digits, up from a previous range spanning the mid- to high-single digits. This means Novartis could reach up to $55 billion in sales this year, Jefferies analysts said in a same-day note.
Novartis’ Tuesday update follows its positive full-year 2024 earnings, which it described as
one of the strongest in its history
after its yearslong rejig as a pure-play pharma company. It achieved $50.3 billion in sales last year.
As for its clinical pipeline, the company axed two programs: a chondrogenic asset called LRX712 and a radiopharmaceutical candidate dubbed GIZ943.
Novartis dropped LRX712 after it showed “insufficient effect on knee cartilage” in a Phase 2 trial of patients with osteoarthritis, a company spokesperson told
Endpoints News
in an email. It nixed GIZ943, which was in development for ovarian and lung cancer, based on a Phase 1 risk-benefit assessment, the spokesperson said.
The first half of 2025 should be especially strong, CFO Harry Kirsch said in a media call. Novartis expects generic competition for its heart failure drug Entresto, cancer medicine Tasigna and blood disorder treatment Promacta from midyear onwards.
Products that performed better than the Street expected in Q1 included asthma drug Xolair ($456 million), spinal muscular atrophy therapy Zolgensma ($327 million) and Still’s disease treatment Ilaris ($419 million), according to Jefferies analysts.
Meanwhile, Kisqali sales in the quarter grew 56% to $956 million, reflecting its position as “the CDK4/6 inhibitor of choice across metastatic and early breast cancer,” CEO Vas Narasimhan said on the call. And sales of cholesterol-lowering medicine Leqvio increased 72% to $257 million as it remains on track to reach blockbuster status this year.
The company also highlighted that it won three FDA approvals in Q1, which should bolster its performance this year. In March, its radioligand drug Pluvicto
was greenlit
for certain prostate cancer patients who haven’t received chemotherapy. Pluvicto reached blockbuster status for the first time last year. Also in March, Fabhalta
secured its third indication
for an ultra-rare kidney disease called C3 glomerulopathy. And earlier this month, Vanrafia
was approved
for a rare kidney disease called IgA nephropathy.