Novartis AG - ADR

Strong Q1 Performance: Novartis reported a 15% increase in net sales and a 27% rise in core operating income for Q1 2025. The core margin improved by 400 basis points to reach 42.1%. These results support an upgrade in full-year guidance to high single-digit sales growth and low double-digit core operating income growth.

Innovative Pipeline Progress: The company highlighted significant strides in its pipeline, with three new drug approvals in quick succession (Pluvicto, Vanrafia, and Fabhalta). Pluvicto is particularly notable, with expectations for peak sales guidance restored to $5 billion. The FDA approval of the PSMAfore indication is expected to bolster growth in the second half of the year.

Pipeline and Market Expansion Plans: Novartis emphasized continued investment in innovative therapies, including expanding their radioligand therapy capabilities and preparations for the launch of OAV-101 gene therapy. There are also ambitions for entering new therapeutic areas such as Sjogren's with ianalumab, which could represent multibillion-dollar market potential.