Novartis Reports Strong Q3 2024 Results with $12.82 Billion in Revenue

On October 29, 2024, local time, Novartis announced its financial results for the third quarter of 2024.Revenue reached $12.823 billion, a year-on-year increase of 10%., with a total revenue of $37.164 billion in the first nine months, representing an 11% increase year-on-year.In terms of net profit, the net income in the third quarter was $3.185 billion, a year-on-year increase of 121%.Net income in the first three quarters was US$9.119 billion, increasing by 62% year-on-year.R&D expenses in the third quarter were $2.392 billion, a year-on-year decrease of 40%.R&D investment in the first three quarters was US$7.18 billion, a year-on-year decrease of 19%.

From the perspective of business areas, the sales revenue of cardiovascular-kidney-metabolism, immunology, neuroscience, and oncology businesses in the first three quarters were $6.173 billion (+35%), $6.886 billion (+22%), $3.459 billion (+31%), and $10.808 billion (+15%), respectively. Several blockbuster products performed outstandingly, such as Entresto (Sacubitril Valsartan), Cosentyx (Secukinumab), and Kesimpta (Ofatumumab), which maintained steady growth, while Kisqali (Ribociclib), Pluvicto (Lutetium Lu 177 Vipivotide Tetraxetan), Leqvio (Inclisiran), and Scemblix (Asciminib) achieved rapid growth.

Secukinumab Soars 28% This Quarter, Revenue Reaches $1.7 Billion, exceeding market expectations by 7%, but facing the expiration of its patent in 2025 and multi-faceted competitive pressures.

Sacubitril Valsartan was one of the main growth drivers, with net sales of $186 million, representing a 26% increase year-over-year.

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Oftamab maintains steady growth in the multiple sclerosis field due to its differentiated advantages. Although its patent has expired, there is currently no biosimilar in clinical development.

Ribociclib sales reached $2.131 billion (+48%), accounting for 20% of the oncology business revenue, with new indications driving new growth points.

Pluvicto's revenue in the first three quarters was $1.041 billion (+47%). A second-line treatment marketing application has been submitted, which is expected to boost sales.

Asciminib has performed well in the market. An application for its frontline treatment has been submitted to the U.S. FDA, and an application has also been filed in China.

Notably, Novartis' net sales in the third quarter grew by 10% year-over-year due to the strong sales performance of Cosentyx. However, despite a 50% year-over-year increase for Pluvicto, its sales growth fell short of expectations due to a one-time revenue adjustment in Europe.

In addition, Novartis received approval for Fabhalta in IgA nephropathy indication in the third quarter and submitted its application for indication expansion to treat C3 glomerulopathy. Meanwhile, Novartis' BET inhibitor pelabresib required a longer follow-up period to determine the regulatory pathway, leading to an $800 million impairment by the company in the third quarter.

Overall, Novartis reported mixed results in its Q3 2024 performance. Despite facing numerous challenges such as patent expirations, competitive pressures, and fluctuations in market expectations, Novartis demonstrated certain growth potential driven by the strong performance of some products and an optimistic outlook for the future.