Novartis has revised its mid-term performance outlook ahead of its Meet Novartis Management event for financial stakeholders in London. The initial guidance of +5% sales CAGR from 2023 to 2028 has been adjusted to +6%, fueled by the current momentum of market growth catalysts and future product launches, many of which are anticipated to retain US exclusivity into the 2030s or beyond.
Looking forward to sustained growth based on a solid foundation year of 2024, Novartis now anticipates a sales growth of +5% CAGR from 2024 to 2029. The company is on course to achieve a core operational income margin exceeding 40% by 2027, bolstered by ongoing sales growth and enhanced productivity.
“Novartis has successfully transitioned into a company focused solely on innovative medicines, equipped with profound expertise in our specialized therapeutic areas and technological platforms. This focus has sharpened our commercial strategy and elevated our peak sales forecasts for Cosentyx, Kisqali, Kesimpta, Pluvicto, and Leqvio. We anticipate more than 15 pivotal readouts in the coming years to further enhance our growth trajectory,” remarked Vas Narasimhan, CEO of Novartis. “In the long run, we’ve pinpointed over 30 promising pipeline assets poised to invigorate our portfolio and sustain mid-single-digit growth beyond 2029. Collectively, we are confident in our streamlined strategy and our ability to generate enduring value for our shareholders.”
Even as most of Novartis’s portfolio stems from internal innovation, strategic acquisitions continue to play a vital role in their capital allocation strategy. Over the past two years, Novartis has undertaken more than 30 strategic ventures, predominantly in exploratory to preclinical stages. Notable recent additions include the acquisition of Kate Therapeutics, which enhances the company’s ongoing endeavors to innovate gene therapies for neuromuscular disorders, and a global licensing and partnership agreement with Ratio Therapeutics for a cutting-edge SSTR2-targeting radiotherapeutic candidate, further enriching their comprehensive radioligand therapy pipeline.
During the event today, attendees will hear from CEO Vas Narasimhan and have the opportunity for a direct dialogue with top executives from across the organization in a Q&A session.