Novartis Surpasses Expectations with Newer Products Driving Growth

Novartis posted a solid second-quarter earnings report that exceeded expectations. The Swiss pharmaceutical giant reported net sales of $14.408 billion, representing a 3% increase in reported US dollars and 1% on a currency-adjusted basis.

The growth was driven by newer products gaining traction at an impressive rate. Kisqali, the breast cancer drug, posted a 43% currency-adjusted sales increase, while Kesimpta, the multiple sclerosis therapy, climbed 32%. Scemblix, the chronic myeloid leukemia treatment, surged 89%, and Pluvicto added 43% as a radioligand therapy. Leqvio jumped 59% as a cholesterol drug.

The company also received regulatory approvals for several products, including Fabhalta (iptacopan) to slow kidney function decline in adults with primary IgA nephropathy, and Rhapsido was approved in Europe and Japan for chronic spontaneous urticaria. Novartis filed for approval of del-zota in Duchenne muscular dystrophy and reported positive early-stage data for del-brax in facioscapulohumeral muscular dystrophy.

The company also announced a licensing agreement with Monte Rosa Therapeutics worth up to $5.7 billion, which centers on protein degraders, a class of molecules designed to dismantle disease-causing proteins that have historically been difficult to target.