Novartis’ second-quarter earnings, announced Thursday, show strong performance of its blockbuster drugs, prompting the company to raise its year-end guidance.
Novartis announced its second-quarter results Thursday, exceeding revenue expectations thanks to the continued revenue generated by its blockbusters, including the heart failure drug Entresto and arthritis treatment Cosentyx.
The company’s net sales were $12.5 billion in the second quarter, an 11% increase from Q2 2023. This exceeded the analyst consensus of $12.28 billion, according to the financial research firm InvestorPlace. Novartis also reported earnings per share at $1.97, above the analysts’ estimate of $1.86.
An analyst report from Jefferies said Novartis’ growth was “widely expected.” That’s despite the company making multiple announcements of impending layoffs totalling some 700 employees.
Entresto was the company’s top performer, bringing in $1.8 billion in the quarter. Entresto’s sales were driven by “robust demand-led growth” in the U.S., European and Chinese markets according to Novartis. Cosentyx also supported Novartis’ positive results, with $1.5 billion in sales, a 22% jump from Q2 2023.
Other products with a strong showing in Q2 included the multiple sclerosis treatment Kesimpta, which had a 65% increase from last year, bringing in $799 million; breast cancer treatment Kisqali, which had a 50% boost from Q2 last year, with $717 million in sales; and cholesterol drug Leqvio, which saw a 134% rise from last year, with $182 million in sales.
The company also highlighted that its radioligand therapy Pluvicto grew in the U.S. and Europe, with its supply now being “unconstrained.” Novartis is now focusing on opening new sites and enrolling new patients in the therapy. Pluvicto brought in $345 million in Q2, a 44% increase from last year. Novartis opened a 70,000-square-foot radioligand production facility in Indianapolis earlier this year.
“Novartis delivered a strong Q2, with net sales up 11% and core operating income margin approaching 40%. Our performance reflects continued strong momentum of our key growth drivers, both in the U.S. and ex-U.S., which has allowed us to upgrade our FY2024 guidance,” Novartis CEO Vas Narasimhan said in a statement.
Novartis did experience some speed bumps in the last few months, however, mainly in the form of layoffs. In July, the company axed 29 employees in San Deigo and plans to eliminate around 100 more jobs as it shutters its research site. The company told the San Diego Union-Tribune that changes are intended to “build future capabilities and access global talent pools” Reuters reported in April that Novartis is also planning to cut over 600 jobs in product development.
