Novartis, which employs about 1,000 prople in Ireland, raised its medium-term sales target, citing upbeat expectations for new cancer and immunological disease medicines, as well as treatments for neurological and cardiovascular conditions.
Revenue will grow 6 per cent a year through 2029, the Basel, Switzerland-based drugmaker said on Thursday, an upgrade from its previous guidance of 5 per cent.
Novartis shares rose slightly in early trading Thursday. The company’s stock has risen 7.2 per cent this year through Wednesday’s close, compared with a 3.1 per cent increase for the Bloomberg index tracking European pharmaceutical companies.
The company lifted its peak sales estimates for its Cosentyx, Kisqali, Kesimpta, Pluvicto and Leqvio drugs, most of which have expected US exclusivity in the 2030s or beyond.
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Chief executive Vas Narasimhan highlighted “more than 15 submission-enabling readouts in the coming years to further bolster our growth.”
Novartis also said it counts more than 30 other pipeline assets that will support mid-single-digit growth post 2029.
Novartis is pushing for growth after cutting what was once a sprawling portfolio of healthcare businesses to focus on innovative medicines.
Narasimhan completed the last major step in that transformation just over a year ago with the spin-off of generics producer Sandoz.
Narsimham said that “value-creating bolt-on” merger and acquisition activity will remain an important part of the company’s capital allocation policy.
“Most of our activity, if you looked over the recent seven, eight years has been in the $5 billion range,” said Narasimhan on a media call.
“I don’t think we’ve done a single deal above $10 billion,” he added. “I don’t see that materially changing.”
Narasimhan added that the goal for Novartis to become one of the top five pharmaceutical firms in the US still needs “quite some work,” calling it a “five year plus project.”
“We won’t do MA just to get into the top five, but clearly we want to get there,” he said. – Bloomberg
