Novartis Reports Q3 2024: Radiopharmaceuticals Surpass $1 Billion in First Nine Months, Leqvio Sales More Than Double

Oct 30, 2024 08:26 CST Updated 08:26

Novartis

Drug Development and Manufacturing

On October 29, Novartis announced its Q3 2024 performance, with third-quarter revenue reaching $12.823 billion, a year-on-year increase of 10%. The total revenue for the first nine months was $37.164 billion, a year-on-year increase of 11%. In terms of net profit, Novartis' Q3 net income was $3.185 billion (+121%), and the net income for the first three quarters was $9.119 billion (+62%).

Source:Novartis 2024 Q3 Earnings PPT

In terms of R&D expenses, Novartis' Q3 R&D investment was $2.392 billion (-40%), and the R&D investment for the first three quarters was $7.180 billion (-19%).

Source：Novartis 2024 Q3 Earnings Supplemental Materials

In terms of specific business areas, the sales revenue for cardiovascular-renal-metabolic, immunology, neuroscience, and oncology 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 of Novartis maintained steady growth, such as Entresto (sacubitril valsartan), Cosentyx (secukinumab), and Kesimpta (ofatumumab); some products achieved rapid growth, such as Kisqali (ribociclib), Pluvicto (lutetium Lu 177 vipivotide tetraxetan), Leqvio (inclisiran), and Scemblix (asciminib).

Novartis Top 20 Best-Selling Drugs in the First Three Quarters of 2024

Source:Novartis 2024 Q3 Earnings Press Release

InCardiovascular-Renal-Metabolic FieldNovartis' two revolutionary drugs, Entresto (sacubitril valsartan) and Leqvio (inclisiran), contributed $5.642 billion (+30%) and $531 million (+130%) in revenue, respectively.

Entresto Will Face Significant Threats Next Year, On One HandNovartis Expects Generic Versions of Entresto to Enter the U.S. Market by Mid-2025On the other hand, Entresto has been included in the first round of Medicare negotiation price reduction list in the United States, with a price reduction of 53% (to be implemented starting in 2026).

Source:Novartis 2024 Q3 Earnings PPT

Leqvio (Inclisiran) is also under competitive pressure from other PCSK9 inhibitors such as Evolocumab and Toralizumab, but it shows a good growth momentum. Novartis continues to expand the application boundaries of Leqvio.Plan to submit the drug for marketing approval to reduce LDL-C levels in patients with low or moderate ASCVD risk.。

Source:Novartis 2024 Q3 Earnings PPT

Notably, Novartis also received approval for Fabhalta (Iptacopan) for the IgA nephropathy indication in the third quarter. This is the first complement drug approved for the treatment of IgA nephropathy, offering a new therapeutic option for these patients. Additionally, with the Phase III APPEAR-C3G study declared successful,Novartis has also submitted an application for the extension of Fabhalta's indication to treat C3 glomerulopathy in China and the United States.。

Source:Novartis 2024 Q3 Earnings PPT

In the immunology field, Novartis' flagship product Cosentyx (secukinumab) also faces competitive pressure from multiple products. However, it gained approval in 2023 for the indication of Hidradenitis Suppurativa (HS). This approval made Cosentyx the first novel therapy in the HS field in nearly a decade, providing new momentum for its revenue growth. Nevertheless, the patent for Cosentyx will expire in 2025, after which it will face threats from biosimilar products. Currently, several pharmaceutical companies (Bio-Thera Solutions, CSPC Pharmaceutical Group, MabTech, etc.) have biosimilars of secukinumab in Phase III development.

Source:Novartis 2024 Q3 Earnings PPT

In the field of neuroscience, as the only self-injectable CD20 monoclonal antibody currently available, Kesimpta (ofatumumab) still maintains a differentiated advantage in the multiple sclerosis market, ensuring steady growth. Ocrevus (ocrelizumab), a strong competitor from Roche, has also launched a subcutaneous injection formulation this year, with the advantage of lower injection frequency (twice a year vs. once a month), but it still requires administration under medical supervision. Additionally, although Kesimpta's patent expired in 2023, there are currently no biosimilars in clinical development.

Source:Novartis 2024 Q3 Earnings PPT

In the oncology field, the CDK4/6 inhibitor Kisqali (ribociclib) contributed the most to revenue, with sales reaching $2.131 billion (+48%), accounting for 20% of the oncology business income.In Q3 this year, Kisqali gained two new indications in the United States.: ① In combination with aromatase inhibitors asInitial Endocrine TherapyFor the treatment of adult patients with HR+/HER2- advanced or metastatic breast cancer, or in combination with fulvestrant for patients who have progressed after endocrine therapy; ② In combination with aromatase inhibitors.Adjuvant TherapyHR+/HER2- and high-risk recurrent stage II and III early breast cancer (EBC) patients, including lymph node-negative (N0) patients. The coverage of an earlier-stage HR+/HER2- breast cancer patient population has created a new growth point for Kisqali.

Source:Novartis 2024 Q3 Earnings PPT

Another blockbuster product of Novartis in the oncology field, Pluvicto, also maintained impressive performance, with revenue in the first three quarters reaching $1.041 billion (+47%). Currently, Pluvicto can be used forThird-line TreatmentPSMA-positive metastatic castration-resistant prostate cancer (mCRPC). According to Novartis' financial report, itsPluvicto Submitted for Second-Line Treatment of PSMA-Positive mCRPC. After the approval of this indication, the annual sales of Pluvicto are expected to reach new heights.

Source:Novartis 2024 Q3 Earnings PPT

Scemblix (Asciminib) is currently only approved for use inThird-line TreatmentChronic Phase Philadelphia Chromosome Positive (Ph+ CML-CP), but its market performance has been quite good. After the Phase III ASC4FIRST study brought good news,Novartis Submits Scemblix for FDA Approval as First-Line Treatment for Ph+ CML-CP, the application is expected to be approved in Q4. In addition, Novartis also submitted the marketing application for Asciminib in China this June.

Source:Novartis 2024 Q3 Earnings PPT

In view of the current performance, Novartis has raised its overall performance outlook for 2024 from the original high single-digit growth to low double-digit growth.

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