News

Novartis Set to Report Q3 Results

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Andrew R. Michaud

• October 23, 2023

Novartis, the Swiss pharmaceutical major, is gearing up to release its third-quarter results on Tuesday. Here are the key details you should know:

Sales Forecast

Analysts estimate that Novartis will report third-quarter sales of $11.62 billion. This consensus, provided by FactSet and based on the estimates of seven analysts, is lower than the $12.54 billion in sales recorded during the same quarter last year.

Core Net Profit Forecast

The forecast for Novartis's quarterly core net profit stands at $3.51 billion, according to the consensus provided by FactSet. This figure is slightly higher than the $3.42 billion core net profit reported during the same period last year.

What to Watch For

Key Drugs

Since the recent spinoff of Sandoz, Novartis has transformed into a pure-play pharma company with a focus on innovative medicines. Investors will be keen on Novartis's updated views regarding its prostate-cancer drug Pluvicto, following the presentation of new data at an oncology congress. According to UBS analyst Colin White, Pluvicto, along with breast-cancer drug Kisqali and multiple-sclerosis treatment Kesimpta, are crucial growth drivers for the company's medium-term sales growth target of over 4%.

Guidance

In July, Novartis revised its 2023 guidance, citing strong first-half momentum. The company anticipates sales growth in the high single percentage digit range, with core operating profit expected to rise in the low double percentage digit range. While the sales outlook is likely to remain unchanged, Jefferies analysts suggest that Novartis may raise its forecast for core operating profit to the upper end of the range.