Novartis, the Swiss pharmaceutical giant, posted impressive financial results for the fourth quarter of 2024, significantly surpassing analysts' expectations. On January 31, 2025, the company revealed its quarterly adjusted net income reached $3.93 billion, marking a 26% increase compared to the previous year. This figure outstripped the consensus forecast of $3.64 billion, according to LSEG data.
The surge in profits was driven by remarkable sales performances from its heart failure medication, Entresto, and its multiple sclerosis treatment, Kesimpta. Specifically, Entresto saw its revenues rise by one-third to hit $2.18 billion for the quarter. Despite the impending patent loss expected around mid-year, this drug remains one of Novartis's key revenue drivers.
Meanwhile, sales of Kesimpta soared almost 50% to $950 million, also exceeding market expectations. This drug, which allows patients to self-administer monthly injections, has gained traction among consumers, contributing to the firm’s rising figures.
Looking at the broader financial picture, Novartis reported fourth-quarter net sales of $13.2 billion, reflecting a 16% increase on a constant currency basis. Analysts had expected $12.795 billion, indicating Novartis's growing competitiveness and market demand for its products.
CEO Vas Narasimhan expressed optimism about the company's performance, stating, "Novartis delivered one of the strongest financial performances in our history." This positive outlook is underpinned by Novartis's strategic repositioning aiming to focus exclusively on innovative medicines, which has begun to bear fruit.
For the full year of 2024, net sales climbed to $50.32 billion, albeit slightly below the forecasted $50.47 billion. Nonetheless, the company's core operating income rose by 22% to $19.5 billion, exceeding expectations of $17.02 billion.
With 2025 on the horizon, Novartis's guidance predicts continued growth, with operating income expected to increase by “high single to low double-digit” percentages, excluding fluctuational currency impacts. This positive forecast marks a reduction compared to the previous year's 22% increase, yet remains encouraging as the firm invests heavily in its developmental pipeline.
Despite slightly missing the full-year sales forecast, the company maintains its optimistic growth strategy. Looking forward, Novartis is focusing on advancing over 30 development assets, which are pivotal for sustaining long-term growth. These initiatives signal the company's commitment to innovation and expansion within the pharmaceutical industry.
Overall, Novartis's fourth-quarter results paint a promising picture for the company, highlighting the impact of its strategic transformations and the strong reception from the marketplace for its drugs. The upcoming year promises to be significant as Novartis navigates potential challenges linked to patent expirations and strives to maintain its growth momentum.