Novartis reports sales up 12% in Q3 2023 as ‘pure-play’ transformation complete

Key takeaways:

• Novartis raised its 2023 full-year guidance as sales grew 12% in the third quarter.
• The company has completed its move toward being a “’pure-play’ innovative medicines business.”

Novartis sales grew 12% on a constant currency basis, with core operating income up 21%, in the third quarter of 2023 compared with this time last year, according to a company press release.

“Novartis delivered a very strong quarter, with double-digit sales and core operating income growth leading to a further upgrade to 2023 guidance,” Vas Narashimhan, MD, MPP, CEO of Novartis, said in the release. “We are confident in our mid-term growth outlook and remain committed to creating value for our shareholders.”

The company has completed its shift to what it calls a “’pure-play’ innovative medicines business,” with Sandoz spun off as a standalone entity. Innovation milestones this quarter included positive phase 3 results for Cosentyx (secukinumab), Pluvicto (lutetium Lu 177 vipivotide tetraxetan), iptacopan, remibrutinib, Lutathera (lutetium Lu 177 dotatate) and Kisqali (ribociclib).

Novartis raised its 2023 full-year guidance for core operating income, now expected to reach the mid-to-high teens, with high single-digit growth expected in net sales.

Net sales reached $11.8 billion. Net income grew 37% to $1.5 billion, largely driven by increased operating income due to higher sales and reduced restructuring charges.

The company has initiated a previously announced share buyback of up to $15 billion expected to be completed by the end of 2025.