Novartis Reports H1 2021 Revenue of $25.4 Billion with $1.56 Billion from China Driven by Strong Growth in Entresto, Cosentyx, and Zolgensma

By | Qingwa

On July 21, Novartis released its 2021 half-year report, becoming the first multinational pharmaceutical company to announce its H1 2021 financial results. Driven by robust growth in products such as Entresto and Cosentyx, Novartis reported H1 revenue of $25.367 billion, up 7% year-on-year, and net profit of $4.954 billion, representing a 23% year-on-year increase.

Note: CC refers to constant currency.

Following the 2019 spin-off of its ophthalmics business, Alcon, Novartis is now a highly focused pharmaceutical company. Its current business is structured around two main pillars: Innovative Medicines and Sandoz (Generics). The Innovative Medicines division comprises two core business units: the Pharmaceuticals BU and the Oncology BU.

In the first half of 2021, Novartis reported net sales of USD 20.7 billion for its Innovative Medicines business (+9%, +5% cc), with the Pharmaceuticals BU growing by 6% (cc) and the Oncology BU by 4% (cc); the Generics business, primarily managed by Sandoz, generated sales revenue of USD 4.7 billion (0%, -5% cc) for the period.

Novartis Top 20 Selling Products in H1 2021

In terms of specific products, the sales growth of the Pharmaceuticals Business Unit was primarily driven by the rheumatology and immunology blockbuster Cosentyx (secukinumab), the new heart failure drug Entresto (sacubitril/valsartan), and the gene therapy Zolgensma. Secukinumab generated revenue of $2.228 billion in the first half of 2021, up 19% year-on-year; sacubitril/valsartan generated revenue of $1.675 billion in the first half of the year, up 46% year-on-year;

Cosentyx’s growth momentum remains robust, driven by amplified demand across key markets. Future growth will primarily be fueled by deeper market penetration among target populations for existing indications, volume expansion following its inclusion in China’s National Reimbursement Drug List (NRDL) for PsO and AS indications, and expansion into ten additional indications pending regulatory approval.

Zolgensma, a gene therapy for spinal muscular atrophy (SMA), has currently been approved in as many as 41 countries. In the first half of 2021, it generated $634 million (+69%) in sales revenue. At this growth rate, Zolgensma will enter the "$1 billion club" this year. Its future growth potential lies in securing regulatory approvals in more countries, gaining health insurance coverage in additional nations, and increasing newborn SMA screening rates in developed countries and regions such as the United States and Europe.

According to the financial report, Novartis recorded cumulative revenue of $1.555 billion in China during the first half of 2021, with Q1 revenue in China reaching $744 million (+11%) and Q2 revenue reaching $811 million (+18%).

Original Title: Novartis H1 2021 Report: Revenue of $25.4 Billion, China Revenue of $1.5 Billion, Gene Therapy Zolgensma Sales Up 69%, Entresto Up 46%