Novartis, a Swiss drugmaker, saw its shares rise by as much as 4.8% in early trading on Tuesday. This increase came after the company released its first-quarter results, which exceeded expectations. Net sales for the company rose by 11% in the first three months of the year, while core operating income saw a 22% increase over the same period.
According to Novartis CEO Vas Narasimhan, the company’s growth was solid across all major brands. This includes popular drugs such as Entresto, a heart failure medication, and Cosentyx, used to treat psoriasis. The positive performance led Novartis to raise its full-year guidance for 2024.
Novartis now anticipates a high single- to low double-digit percentage increase in net sales for 2024. This is up from the previous outlook of mid-single-digit growth. Additionally, the company has revised its expectations for core operating income, now expecting expansion by a low double-digit to mid-teens percentage.
Narasimhan highlighted the progress Novartis has made in advancing its drug pipeline during the first quarter. This includes the development of treatments for prostate cancer and leukemia. He expressed confidence in the company’s mid- and long-term growth outlook, citing the momentum in both the business and pipeline.
Overall, Novartis’ strong first-quarter results and positive growth outlook have instilled confidence in investors and analysts alike. The company’s focus on innovation and development in key therapeutic areas has positioned it for continued success in the future. With a solid performance across major brands and geographies, Novartis is poised to maintain its growth trajectory and deliver value to shareholders.
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