Novartis shares jump as drugmaker boosts outlook

By Steve Goldstein

Novartis shares rallied on Tuesday as the Swiss drugmaker raised its outlook for the year after seeing strong demand for heart and psoriasis drugs.

Novartis said it's now expecting sales growth in the high single to low double-digits for 2024, up from mid single digits, and core operating profit growth in the low double-digit to mid-teens, from high single digits.

Its first-quarter profit rose 25% to $2.69 billion as sales rose 10% to $11.83 billion. Its core earnings per share rose 17% to $1.80. Analysts polled by Visible Alpha expected a core EPS of $1.67 on sales of $11.38 billion.

Novartis shares (CH:NOVN) (NVS) rose 5% in Swiss trade, bringing its year-to-date gains to 8%.

During the quarter, sales of its heart drug Entresto rose 36% at constant currencies to $1.88 billion, and sales of arthritis drug Cosentyx rose 25% to $1.33 billion. Its top 20 brands saw sales growth of 16%, or 18% at constant currencies.

The company said it's going to nominate Giovanni Caforio, the former CEO of Bristol-Myers Squibb and until last its month its executive chairman, to be chair when Joerg Reinhardt retires next year.

-Steve Goldstein

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04-23-24 0348ET

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