Financial Report: Novartis

Novartis

3Q Revenues: $12.3 billion (+1%)

3Q Earnings: $1.9 billion (-5%)

YTD Revenues: $35.9 billion (+2 %)

YTD Earnings: $6.0 billion (-44%)

Comments: Growth drivers in the quarter included Entresto $632 million (+45% cc), Zolgensma $291 million (+79% cc), Cosentyx $1.0 billion (+7% cc), Kisqali $183 million (+50% cc) and Promacta/Revolade $442 million (+16% cc). Sandoz Biopharmaceuticals grew 13% with growth across all regions. Innovative Medicines sales were $9.8 billion (+2%) with volume contributing 9 percentage points to growth, pricing had a negative impact of 5 percentage points and generic competition had a negative impact of 3 percentage points mainly due to Afinitor and Exjade. Pharmaceutical sales grew 2% (cc) driven by Entresto, Cosentyx and Zolgensma. Growth was partly offset by declines in Established Medicines and ophthalmology brands. Oncology sales were in line with prior year (-1% cc). Strong performance of Kisqali, Promacta/Revolade, Jakavi, Tafinlar + Mekinist and Piqray was offset by generic competition for Afinitor and Exjade. The COVID-19 pandemic continued to negatively impact dermatology and ophthalmology. In the quarter, Kesimpta was approved and launched in the U.S. for treatment of relapsing forms of multiple sclerosis. Piqray received EC approval for HR+/HER2- advanced breast cancer with a PIK3CA mutation.