Novartis Reports Full-Year 2020 Net Profit of $8.071 Billion, Up 13% Year-over-Year, Driven by Strong Growth in Gene and Cell Therapies

On January 26 local time, Novartis announced its financial results for the fourth quarter and full year of 2020. The financial report showed that net sales in Q4 amounted to $12.77 billion, a 3% year-on-year increase from $12.403 billion in the same period last year; net profit reached $2.099 billion, up 86% from $1.129 billion in the same period last year; earnings per share (EPS) were $0.92, compared to $0.50 in the same period last year. For the full year 2020, net sales totaled $48.659 billion, a 3% year-on-year increase; net profit was $8.071 billion, up 13% year-on-year; earnings per share (EPS) were $3.55, compared to $3.12 in the previous year.

By business segment, Novartis Pharmaceuticals reported sales revenue of USD 24.302 billion (+4%) in 2020; Novartis Oncology reported sales revenue of USD 14.711 billion (+2%). The Generics business reported sales revenue of USD 9.646 billion (-1%).

From a product perspective, the psoriasis drug Cosentyx and the new heart failure medication Entresto remain the primary drivers of Novartis’s performance growth. In 2020, Cosentyx and Entresto collectively contributed $6.5 billion in revenue, representing a 25% year-over-year increase. Among them, Cosentyx achieved annual sales revenue of $4 billion in 2020, a 13% year-over-year increase.

Additionally, the gene therapy Zolgensma for spinal muscular atrophy and Piqray for breast cancer experienced explosive growth in 2020, with year-on-year increases of 151% and 176%, respectively. Zolgensma has been approved in 37 countries and achieved sales revenue of $920 million in 2020. In contrast, Piqray’s sales performance was less robust than that of Zolgensma, with its 2020 sales revenue amounting to only $320 million.

Novartis’ CAR-T product, Kymriah, has also garnered significant attention. Despite the severe impact of the COVID-19 pandemic in 2020, its sales revenue achieved a robust double-digit growth of 68%, reaching $474 million, a year-on-year increase of 68%. Currently, Novartis operates 290 qualified CAR-T treatment centers globally, and Kymriah has been approved for at least one indication in 27 countries.

Geographically, China was the best-performing country in Novartis’ global market (+16%), reaching $2.573 billion and accounting for 5% of the entire Group’s revenue, as the COVID-19 epidemic in China was brought under control at an earlier stage.

In its 2021 performance outlook, Novartis has identified a series of groundbreaking blockbuster new products—including Kymriah, Zolgensma, Leqvio, Beovu, and Tabrecta—as the primary drivers of growth. It is evident that emerging therapies are gradually becoming the mainstay in Novartis’s strategic planning and portfolio. Currently, Novartis has a total of 167 R&D pipeline assets, with 44 in Phase III clinical trials and 5 in the registration stage.

Responsible Editor: Liuli

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