Novartis was among the most prolific pharma dealmakers in 2024, a trend that it expects to continue with more bolt-on deals this year to set up for sustainable long-term growth.
After signing 30 deals in 2024, Novartis is not done, CEO Vas Narasimhan said on a Friday morning media call. The Swiss pharma will continue to be on the lookout for bolt-on acquisitions as it sets the stage for long-term growth.
“We will continue our strategy to look for primarily bolt-on acquisitions that we think will bolster our growth in the 2030 and beyond period,” Novartis CEO Vas Narasimhan said during a Friday morning media call to discuss the pharma’s fourth-quarter and full-year 2024 earnings report. “Last year we signed 30 deals—we believe the most in the industry—mostly early-stage deals.” That volume, according to Narasimhan, demonstrates the company’s philosophy when it comes to M&A.
Novartis’ net sales surged 16% year-over-year at constant currencies to bring in $13.1 billion in the most recent quarter. This figure comfortably tops the $12.82 billion consensus estimate, as per SeekingAlpha. For the full year 2024, Novartis saw a 12% bump in net sales to $50.32 billion.
Key drivers in the quarter included Novartis’ heart failure drug Entresto, which saw sales spike 34% from the same period in 2023 to bring in nearly $2.2 billion. The anti-IgG1 antibody Cosentyx was also a top-performing asset for the pharma, hitting almost $1.6 billion in sales. Multiple sclerosis therapy Kesimpta and breast cancer treatment Kisqalimade made $950 million and $902 million in the quarter, respectively.
In an investor note on Friday, analysts at BMO Capital Markets said that Novartis’ Q4 beat came “despite softness in some key products,” including prostate cancer radiotherapy Pluvicto, which earned $351 million in the quarter.
Entresto is facing a strong generic threat, with at least four copycats approved by the FDA. Of these, the one developed by MSN Pharmaceuticals has been at the center of a fierce legal fight, with Novartis seeking to block its entry into the U.S. market. Most recently, the pharma secured a last-minute win when the U.S. Court of Appeals for the Federal Circuit earlier this month temporary blocked MSN Pharma from commercializing its generic while the case remains open.
On the media call, CFO Harry Kirsch said that the company will “continue to defend” Entresto’s exclusivity in the coming year.
Novartis emerged as one of pharma’s most prolific dealmakers in 2024. Last month, the pharma put forth $1 billion in upfront payments and up to $1.9 billion in milestone commitments to license PTC Therapeutics’ Huntington’s disease drug. Just weeks earlier, Novartis bought California-based biotech Kate Therapeutics in an acquisition that could reach $1.1 billion in value.
Other standout Novartis deals in 2024 include the $2.2 billion molecular glue partnership with Monte Rosa in October, the nearly $2.9 billion expansion of its existing PeptiDream pact in April, the potential $1 billion agreement with Flagship’s Generate:Biomedicines in September and the more than $4 billion contract with Shanghai Argo in January.
Shares of Novartis climbed over 2% in pre-market trading Friday morning, reaching $106.98 compared to $104.75 at close the previous day.
