We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Novartis' core EPS rose to $2.25 from $2.06, as sales increased 8% to $13.9 billion.
Kisqali, Kesimpta, Pluvicto and Scemblix drove growth, offsetting generic hits to Entresto and Tasigna.
Novartis agreed to buy Avidity for $12B to strengthen its neuroscience pipeline.
Swiss pharma giant Novartis AG (NVS - Free Report) reported core earnings per share (excluding one-time charges) of $2.25 in the third quarter, which missed the Zacks Consensus Estimate by a penny. Nonetheless, the figure was up from $2.06 reported a year ago. The year-over-year improvement was driven by growth in sales.
Revenues of $13.9 billion climbed 8% from the year-ago reported figure and marginally beat the Zacks Consensus Estimate.
On a constant currency basis, sales increased 7%, driven by continued strong performances from Kisqali, Kesimpta, Scemblix, and Pluvicto, which more than offset the adverse impact of generic competition for Promacta, Tasigna, and Entresto in the United States.
Core Operating income was up 7% to $5.5 billion.
Shares of Novartis have gained 35.9% year to date compared with the industry’s growth of 7.9%.
Image Source: Zacks Investment Research
Detailed Performance of Top NVS Drugs in Q3
All growth rates mentioned below are on a year-over-year basis and at constant exchange rates.
With the successful spin-off of the Sandoz business in 2023, Novartis now focuses on four core therapeutic areas — cardiovascular-renal-metabolic, immunology, neuroscience and oncology.
Cardiovascular drug Entresto’s sales decreased 1% from the year-ago level to $1.9 billion as sales were impacted by generic competition in the United States. Sales grew outside the country where the drug is approved for heart failure globally as well as hypertension in China and Japan.
Novartis is in a litigation with a generic manufacturer and FDA in the United States to protect its Entresto IP and regulatory rights.
Entresto’s sales missed the Zacks Consensus Estimate of $2.1 billion and our model estimate of $2 billion.
Cosentyx’s sales (psoriasis, spondylitis and arthritis) were down 1% to $1.7 billion as sales growth was negatively impacted by a one-time revenue deduction adjustment in the United States. Excluding this adjustment, Cosentyx sales were up 4%.
Cosentyx’s sales missed the Zacks Consensus Estimate of $1.72 billion and our model estimate of $1.73 billion.
Kisqali (breast cancer) maintained its stellar performance, with sales surging 68% to $1.33 billion. Sales grew across all regions, driven by exemplary growth in the United States with strong momentum from the recently launched early breast cancer (eBC) indication as well as continued share gains in the metastatic breast cancer indication.
Kisqali sales beat the Zacks Consensus Estimate of $1.29 billion and our model estimate of $1.24 billion.
Kesimpta (multiple sclerosis) sales totaled $1.2 billion, which surged 44% on increased demand and strong access. The figure beat the Zacks Consensus Estimate of $1.11 billion and our model estimate of $1.1 billion.
Sales of Tafinlar + Mekinist were up 1% to $550 million. Jakavi sales were up 4% to $539 million.
However, Promacta sales declined 38% to $362 million due to discontinued promotion in most markets and recent generic entry in the United States in the second quarter of 2025.
Pluvicto (prostate cancer) raked in sales of $564 million, surging 45% on sustained demand growth in the United States following approval for pre-taxane metastatic castration-resistant prostate cancer (mCRPC) as well as continued expansion in the post-taxane mCRPC setting outside the country. The FDA’s approval for earlier use of the drug before chemotherapy has approximately tripled the eligible patient population.
Sales beat the Zacks Consensus Estimate of $533 million and our estimate of $505 million.
Ilaris sales amounted to $473 million, which increased 26% year over year, driven by growth in all regions led by the United States, Europe and Japan. Strong performance in the Periodic Fever Syndromes and Still’s disease indications contributed to this growth.
Xolair (asthma and allergies) sales grew 3% to $440 million driven by the chronic spontaneous urticaria (CSU) indication, with contributions from Europe and emerging growth markets. Novartis has a collaboration agreement with Roche (RHHBY - Free Report) for Xolair. Novartis and Roche co-promote Xolair in the United States.
Tasigna (leukemia) sales plummeted 48% to $221 million due to lower demand and increasing competition, including the entry of generics both in the United States and outside the country.
Gene-therapy Zolgensma (spinal muscular atrophy) sales of $301 million were down 5% due to a lower incidence of spinal muscular atrophy compared to the prior year.
Scemblix sales skyrocketed 95% to $358 million, driven by continued growth in chronic myeloid leukemia indication and strong momentum from the recently launched early-line indication in the United States and Japan. Sales beat the Zacks Consensus Estimate of $348 million and our estimate of $333 million.
Cholesterol drug Leqvio sales soared 54% to $308 million on steady growth in demand, with a focus on increasing accounts and patient adoption. The figure, however, missed the Zacks Consensus Estimate of $323 million and our estimate of $327 million.
Luthathera (cancer) sales totaled $213 million, up 11%. Sales grew mainly in the United States, Europe and Japan due to increased demand and earlier line adoption.
Sales of Lucentis nosedived 42% to $148 million due to generic competition.
Fabhalta generated sales of $149 million, driven by continued launch execution across all markets in paroxysmal nocturnal hemoglobinuria and the launch progress in primary IgA nephropathy and C3 glomerulopathy in the United States.
Novartis Reiterates 2025 Guidance
Net sales are expected to grow in high single digits. Core operating income is anticipated to grow in the low teens.
NVS Announces RNA Acquisition
Novartis announced that it will acquire San Diego-based Avidity Biosciences, Inc. (RNA - Free Report) for $12 billion to strengthen its late-stage neuroscience pipeline.
As part of the agreement, Avidity will separate its early-stage precision cardiology programs into a new company prior to closing of the acquisition.
Avidity is developing RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs) for serious, genetic neuromuscular diseases.
The acquisition will bolster neuroscience franchise for Novartis with three late-stage programs in myotonic dystrophy type 1 (DM1), a rare progressive neuromuscular disorder with a poor prognosis, facioscapulohumeral muscular dystrophy (FSHD), a rare hereditary disorder causing relentless loss of muscle function and progressive disability; and Duchenne muscular dystrophy (DMD), a severe, early-onset disease marked by progressive muscle damage and reduced life expectancy.
The companies expect the merger to be closed in the first half of 2026.
Other Updates From NVS
Novartis received FDA approval for remibrutinib, under the brand name Rhapsido, as an oral treatment for adult patients with CSU who remain symptomatic despite H1 antihistamine treatment. The approval makes it the first FDA-approved Bruton’s tyrosine kinase inhibitor (BTKi) for CSU.
The phase III NEPTUNUS-1 and -2 studies evaluating ianalumab in adults with active Sjögren’s disease met their primary endpoint, showing statistically significant improvements in disease activity as measured by a reduction in ESSDAI compared to placebo. Novartis plans to submit applications for ianalumab to health authorities globally.
Our Take on NVS’ Q3 Performance
Novartis performance in the third quarter was impacted by generic competition for its blockbuster drug Entresto in the United States.
Nevertheless, solid performance of its key drugs such as Kisqali, Kesimpta, Pluvicto and Scemblix maintains momentum for the company.
The pipeline progress is also encouraging. Approval of new drugs and label expansion of existing drugs should enable the company to offset the adverse impacts of generic competition for Tasigna, Promacta and Entresto.
While organic growth continues to drive business, NVS is focused on strategic acquisitions to strengthen its pipeline.
The recently announced RNA acquisition will strengthen its neuroscience franchise with three late-stage programs that address genetic neuromuscular diseases.
The acquisition of Tourmaline Bio, a New York-based clinical-stage biopharmaceutical company for $1.4 billion, adds a phase III ready candidate pacibekitug to NVS’ cardiovascular pipeline.
In June 2025, Novartis acquired Regulus Therapeutics Inc., a clinical-stage biopharmaceutical company.
Novartis entered into a second collaboration agreement with Monte Rosa Therapeutics, in addition to the existing license agreement for VAV1 degraders. Under the new agreement, Novartis will receive an exclusive license to an undisclosed discovery target and options to license two programs from Monte Rosa’s preclinical immunology portfolio.
The company also entered into a global licensing and collaboration agreement with Arrowhead Pharmaceuticals for ARO-SNCA, a preclinical-stage siRNA therapy targeting alpha-synuclein for the treatment of synucleinopathies such as Parkinson’s disease.
BAYRY’s 2025 earnings per share (EPS) estimate has increased from $1.32 to $1.37 for 2025 over the past 60 days, while that for 2026 has gone up from $1.36 to $1.44 over the same timeframe. Year to date, shares of Bayer have surged 63.9%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Novartis Lags Q3 Earnings, Announces $12B Avidity Biosciences Acquisition
Key Takeaways
Swiss pharma giant Novartis AG (NVS - Free Report) reported core earnings per share (excluding one-time charges) of $2.25 in the third quarter, which missed the Zacks Consensus Estimate by a penny. Nonetheless, the figure was up from $2.06 reported a year ago. The year-over-year improvement was driven by growth in sales.
Revenues of $13.9 billion climbed 8% from the year-ago reported figure and marginally beat the Zacks Consensus Estimate.
On a constant currency basis, sales increased 7%, driven by continued strong performances from Kisqali, Kesimpta, Scemblix, and Pluvicto, which more than offset the adverse impact of generic competition for Promacta, Tasigna, and Entresto in the United States.
Core Operating income was up 7% to $5.5 billion.
Shares of Novartis have gained 35.9% year to date compared with the industry’s growth of 7.9%.
Image Source: Zacks Investment Research
Detailed Performance of Top NVS Drugs in Q3
All growth rates mentioned below are on a year-over-year basis and at constant exchange rates.
With the successful spin-off of the Sandoz business in 2023, Novartis now focuses on four core therapeutic areas — cardiovascular-renal-metabolic, immunology, neuroscience and oncology.
Cardiovascular drug Entresto’s sales decreased 1% from the year-ago level to $1.9 billion as sales were impacted by generic competition in the United States. Sales grew outside the country where the drug is approved for heart failure globally as well as hypertension in China and Japan.
Novartis is in a litigation with a generic manufacturer and FDA in the United States to protect its Entresto IP and regulatory rights.
Entresto’s sales missed the Zacks Consensus Estimate of $2.1 billion and our model estimate of $2 billion.
Cosentyx’s sales (psoriasis, spondylitis and arthritis) were down 1% to $1.7 billion as sales growth was negatively impacted by a one-time revenue deduction adjustment in the United States. Excluding this adjustment, Cosentyx sales were up 4%.
Cosentyx’s sales missed the Zacks Consensus Estimate of $1.72 billion and our model estimate of $1.73 billion.
Kisqali (breast cancer) maintained its stellar performance, with sales surging 68% to $1.33 billion. Sales grew across all regions, driven by exemplary growth in the United States with strong momentum from the recently launched early breast cancer (eBC) indication as well as continued share gains in the metastatic breast cancer indication.
Kisqali sales beat the Zacks Consensus Estimate of $1.29 billion and our model estimate of $1.24 billion.
Kesimpta (multiple sclerosis) sales totaled $1.2 billion, which surged 44% on increased demand and strong access. The figure beat the Zacks Consensus Estimate of $1.11 billion and our model estimate of $1.1 billion.
Sales of Tafinlar + Mekinist were up 1% to $550 million. Jakavi sales were up 4% to $539 million.
However, Promacta sales declined 38% to $362 million due to discontinued promotion in most markets and recent generic entry in the United States in the second quarter of 2025.
Pluvicto (prostate cancer) raked in sales of $564 million, surging 45% on sustained demand growth in the United States following approval for pre-taxane metastatic castration-resistant prostate cancer (mCRPC) as well as continued expansion in the post-taxane mCRPC setting outside the country. The FDA’s approval for earlier use of the drug before chemotherapy has approximately tripled the eligible patient population.
Sales beat the Zacks Consensus Estimate of $533 million and our estimate of $505 million.
Ilaris sales amounted to $473 million, which increased 26% year over year, driven by growth in all regions led by the United States, Europe and Japan. Strong performance in the Periodic Fever Syndromes and Still’s disease indications contributed to this growth.
Xolair (asthma and allergies) sales grew 3% to $440 million driven by the chronic spontaneous urticaria (CSU) indication, with contributions from Europe and emerging growth markets. Novartis has a collaboration agreement with Roche (RHHBY - Free Report) for Xolair. Novartis and Roche co-promote Xolair in the United States.
Tasigna (leukemia) sales plummeted 48% to $221 million due to lower demand and increasing competition, including the entry of generics both in the United States and outside the country.
Gene-therapy Zolgensma (spinal muscular atrophy) sales of $301 million were down 5% due to a lower incidence of spinal muscular atrophy compared to the prior year.
Scemblix sales skyrocketed 95% to $358 million, driven by continued growth in chronic myeloid leukemia indication and strong momentum from the recently launched early-line indication in the United States and Japan. Sales beat the Zacks Consensus Estimate of $348 million and our estimate of $333 million.
Cholesterol drug Leqvio sales soared 54% to $308 million on steady growth in demand, with a focus on increasing accounts and patient adoption. The figure, however, missed the Zacks Consensus Estimate of $323 million and our estimate of $327 million.
Luthathera (cancer) sales totaled $213 million, up 11%. Sales grew mainly in the United States, Europe and Japan due to increased demand and earlier line adoption.
Sales of Lucentis nosedived 42% to $148 million due to generic competition.
Fabhalta generated sales of $149 million, driven by continued launch execution across all markets in paroxysmal nocturnal hemoglobinuria and the launch progress in primary IgA nephropathy and C3 glomerulopathy in the United States.
Novartis Reiterates 2025 Guidance
Net sales are expected to grow in high single digits. Core operating income is anticipated to grow in the low teens.
NVS Announces RNA Acquisition
Novartis announced that it will acquire San Diego-based Avidity Biosciences, Inc. (RNA - Free Report) for $12 billion to strengthen its late-stage neuroscience pipeline.
As part of the agreement, Avidity will separate its early-stage precision cardiology programs into a new company prior to closing of the acquisition.
Avidity is developing RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs) for serious, genetic neuromuscular diseases.
The acquisition will bolster neuroscience franchise for Novartis with three late-stage programs in myotonic dystrophy type 1 (DM1), a rare progressive neuromuscular disorder with a poor prognosis, facioscapulohumeral muscular dystrophy (FSHD), a rare hereditary disorder causing relentless loss of muscle function and progressive disability; and Duchenne muscular dystrophy (DMD), a severe, early-onset disease marked by progressive muscle damage and reduced life expectancy.
The companies expect the merger to be closed in the first half of 2026.
Other Updates From NVS
Novartis received FDA approval for remibrutinib, under the brand name Rhapsido, as an oral treatment for adult patients with CSU who remain symptomatic despite H1 antihistamine treatment. The approval makes it the first FDA-approved Bruton’s tyrosine kinase inhibitor (BTKi) for CSU.
The phase III NEPTUNUS-1 and -2 studies evaluating ianalumab in adults with active Sjögren’s disease met their primary endpoint, showing statistically significant improvements in disease activity as measured by a reduction in ESSDAI compared to placebo. Novartis plans to submit applications for ianalumab to health authorities globally.
Our Take on NVS’ Q3 Performance
Novartis performance in the third quarter was impacted by generic competition for its blockbuster drug Entresto in the United States.
Novartis AG Price, Consensus and EPS Surprise
Novartis AG price-consensus-eps-surprise-chart | Novartis AG Quote
Nevertheless, solid performance of its key drugs such as Kisqali, Kesimpta, Pluvicto and Scemblix maintains momentum for the company.
The pipeline progress is also encouraging. Approval of new drugs and label expansion of existing drugs should enable the company to offset the adverse impacts of generic competition for Tasigna, Promacta and Entresto.
While organic growth continues to drive business, NVS is focused on strategic acquisitions to strengthen its pipeline.
The recently announced RNA acquisition will strengthen its neuroscience franchise with three late-stage programs that address genetic neuromuscular diseases.
The acquisition of Tourmaline Bio, a New York-based clinical-stage biopharmaceutical company for $1.4 billion, adds a phase III ready candidate pacibekitug to NVS’ cardiovascular pipeline.
In June 2025, Novartis acquired Regulus Therapeutics Inc., a clinical-stage biopharmaceutical company.
Novartis entered into a second collaboration agreement with Monte Rosa Therapeutics, in addition to the existing license agreement for VAV1 degraders. Under the new agreement, Novartis will receive an exclusive license to an undisclosed discovery target and options to license two programs from Monte Rosa’s preclinical immunology portfolio.
The company also entered into a global licensing and collaboration agreement with Arrowhead Pharmaceuticals for ARO-SNCA, a preclinical-stage siRNA therapy targeting alpha-synuclein for the treatment of synucleinopathies such as Parkinson’s disease.
NVS’ Zacks Rank and Stock to Consider
Novartis currently carries a Zacks Rank #3 (Hold). A better-ranked large-cap pharmaceutical stock is Bayer (BAYRY - Free Report) , which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
BAYRY’s 2025 earnings per share (EPS) estimate has increased from $1.32 to $1.37 for 2025 over the past 60 days, while that for 2026 has gone up from $1.36 to $1.44 over the same timeframe. Year to date, shares of Bayer have surged 63.9%.