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Novartis (NVS) Key Drugs and Pipeline Progress Fuel Growth
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Novartis (NVS - Free Report) has had a good run so far in 2023 and has gained strong momentum in the last couple of months.
Novartis’ performance in the second quarter was better than expected, as both earnings and sales beat estimates. The company raised its annual guidance for the second consecutive quarter. This boosted investors’ sentiment.
While the older drugs face generic competition, the continued strong performance of Entresto, Pluvicto, Kesimpta and Kisqali fueled growth and should maintain momentum.
Growth engine Entresto’s sales rose 31% in the first half of 2023 to $2.2 billion due to sustained, robust demand-led growth and increased patient share across all geographies.
The strong performance of the relapsed multiple sclerosis drug Kesimpta (up 105% in the first half), driven by increased demand and strong access, also boosted the top line.
Pluvicto and Scemblix have witnessed robust launches and recorded solid sales. Pluvicto continues to see strong demand in the United States as the first and only radioligand therapy approved by the FDA for the treatment of adult patients with progressive, PSMA-positive metastatic castration-resistant prostate cancer. The Leqvio launch also continues to progress well.
Earlier, shares surged in March after Novartis announced positive top-line results from an interim analysis of the late-stage NATALEE study on the breast cancer drug Kisqali. The Independent Data Monitoring Committee recommended that the study be stopped early as the primary endpoint of invasive disease-free survival was met.
The positive top-line results from NATALEE support Novartis’ efforts to expand the benefits of Kisqali to patients with earlier stages of breast cancer. Kisqali's sales gained 66% in the first half of 2023 to $908 million and should gain further momentum.
The company is also looking to further bolster its pipeline through strategic acquisitions. Novartis recently acquired Chinook Therapeutics for $3.5 billion to strengthen its renal pipeline. The acquisition will add Chinook’s pipeline, which includes two late-stage candidates, atrasentan and zigakibart, for immunoglobulin A nephropathy, to Novartis’ pipeline.
In 2021, Novartis sold its stake in Roche (RHHBY - Free Report) for $20.7 billion. The company has been a shareholder of RHHBY since May 2001. Novartis was reportedly looking for strategic acquisitions in the pharma/biotech space using the cash proceeds from its stake sale in Roche.
Concurrently, it is streamlining its portfolio and has strategically decided to divest its “front of eye” ophthalmology assets to Bausch + Lomb (BLCO - Free Report) , a global eye health company.
Xiidra, the first approved prescription treatment for dry eye disease and SAF312, a first-in-class therapy for chronic ocular surface pain (COSP), are pivotal assets included in the transaction. Novartis has signed an agreement with Bausch + Lomb to transfer Xiidra and SAF312 (libvatrep) for $2.5 billion.
This deal comprises $1.75 billion in upfront cash along with additional milestone payments.
However, the performance of Novartis’ other growth driver, Cosentyx, was pretty ordinary in the first half as sales continued to be impacted by revenue deduction adjustments in the United States.
The company also recently received an unfavorable ruling from the U.S. District Court for the District of Delaware regarding the validity of a patent covering Entresto. The U.S. District Court for the District of Delaware issued a negative decision regarding the validity of U.S. Patent No. 8,101,659, one of the patents listed in the Orange Book for Entresto.
Novartis had earlier announced that it planned to spin off Sandoz into a new publicly traded standalone company following a strategic review. The planned spin-off of the Sandoz unit remains on track for the fourth quarter.
With the planned spin-off of Sandoz, Novartis is looking to become a pure-play pharmaceutical company. The strong performance of key drugs, strategic acquisitions and streamlined focus should pave the way for solid growth for NVS in the quarters ahead.
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Novartis (NVS) Key Drugs and Pipeline Progress Fuel Growth
Novartis (NVS - Free Report) has had a good run so far in 2023 and has gained strong momentum in the last couple of months.
Novartis’ performance in the second quarter was better than expected, as both earnings and sales beat estimates. The company raised its annual guidance for the second consecutive quarter. This boosted investors’ sentiment.
While the older drugs face generic competition, the continued strong performance of Entresto, Pluvicto, Kesimpta and Kisqali fueled growth and should maintain momentum.
Growth engine Entresto’s sales rose 31% in the first half of 2023 to $2.2 billion due to sustained, robust demand-led growth and increased patient share across all geographies.
The strong performance of the relapsed multiple sclerosis drug Kesimpta (up 105% in the first half), driven by increased demand and strong access, also boosted the top line.
Pluvicto and Scemblix have witnessed robust launches and recorded solid sales. Pluvicto continues to see strong demand in the United States as the first and only radioligand therapy approved by the FDA for the treatment of adult patients with progressive, PSMA-positive metastatic castration-resistant prostate cancer. The Leqvio launch also continues to progress well.
Earlier, shares surged in March after Novartis announced positive top-line results from an interim analysis of the late-stage NATALEE study on the breast cancer drug Kisqali. The Independent Data Monitoring Committee recommended that the study be stopped early as the primary endpoint of invasive disease-free survival was met.
The positive top-line results from NATALEE support Novartis’ efforts to expand the benefits of Kisqali to patients with earlier stages of breast cancer. Kisqali's sales gained 66% in the first half of 2023 to $908 million and should gain further momentum.
The company is also looking to further bolster its pipeline through strategic acquisitions. Novartis recently acquired Chinook Therapeutics for $3.5 billion to strengthen its renal pipeline. The acquisition will add Chinook’s pipeline, which includes two late-stage candidates, atrasentan and zigakibart, for immunoglobulin A nephropathy, to Novartis’ pipeline.
In 2021, Novartis sold its stake in Roche (RHHBY - Free Report) for $20.7 billion. The company has been a shareholder of RHHBY since May 2001. Novartis was reportedly looking for strategic acquisitions in the pharma/biotech space using the cash proceeds from its stake sale in Roche.
Concurrently, it is streamlining its portfolio and has strategically decided to divest its “front of eye” ophthalmology assets to Bausch + Lomb (BLCO - Free Report) , a global eye health company.
Xiidra, the first approved prescription treatment for dry eye disease and SAF312, a first-in-class therapy for chronic ocular surface pain (COSP), are pivotal assets included in the transaction. Novartis has signed an agreement with Bausch + Lomb to transfer Xiidra and SAF312 (libvatrep) for $2.5 billion.
This deal comprises $1.75 billion in upfront cash along with additional milestone payments.
However, the performance of Novartis’ other growth driver, Cosentyx, was pretty ordinary in the first half as sales continued to be impacted by revenue deduction adjustments in the United States.
The company also recently received an unfavorable ruling from the U.S. District Court for the District of Delaware regarding the validity of a patent covering Entresto. The U.S. District Court for the District of Delaware issued a negative decision regarding the validity of U.S. Patent No. 8,101,659, one of the patents listed in the Orange Book for Entresto.
Novartis had earlier announced that it planned to spin off Sandoz into a new publicly traded standalone company following a strategic review. The planned spin-off of the Sandoz unit remains on track for the fourth quarter.
With the planned spin-off of Sandoz, Novartis is looking to become a pure-play pharmaceutical company. The strong performance of key drugs, strategic acquisitions and streamlined focus should pave the way for solid growth for NVS in the quarters ahead.