Novartis has returned to sales growth in the second quarter as newer medicines have helped offset the loss of exclusivity for its heart failure treatment, sacubitril/valsartan.
The Swiss drugmaker has also chalked up a series of regulatory approvals and clinical milestones, reinforcing confidence in its late-stage pipeline.
The company reported sales of $14.4bn, up 3% in US dollar terms, while net income fell 19%. Despite the weaker earnings, Novartis reaffirmed its full-year guidance and said it remains on track for several important clinical readouts in the second half of the year.
A changing portfolio
The latest results highlight how Novartis’ portfolio is changing.
Growth was led by ribociclib for breast cancer, ofatumumab for relapsing multiple sclerosis and inclisiran for lowering LDL cholesterol. Demand for all three continued to rise during the quarter.
That growth helped cushion the decline in sacubitril/valsartan, once one of Novartis’ biggest-selling medicines. According to the report, sales of the drug have roughly halved year on year, underlining the impact patent expiry can have on a company’s revenue.
While newer medicines are replacing lost revenue, the transition has yet to restore earnings growth.
Pipeline progress elsewhere
Other pipeline highlights included:
- Approval in Europe and Japan for remibrutinib, an oral BTK inhibitor for chronic spontaneous urticaria.
- Broader European approval for its gene replacement therapy for spinal muscular atrophy, along with the submission of an investigational treatment for Duchenne muscular dystrophy to the FDA.
- Six-year follow-up data reinforcing the survival benefit of ribociclib in early breast cancer.
- Positive biomarker data for an experimental treatment for facioscapulohumeral muscular dystrophy and further evidence supporting earlier use of the company’s radioligand therapy for prostate cancer.
“Novartis delivered a solid second quarter, returning to sales growth,” said Vas Narasimhan, CEO, Novartis. “We also made meaningful pipeline progress… We are on track for multiple important readouts ahead in the second half.”
Reporting season gathers pace
Novartis is among the first major European drugmakers to report second quarter results, following Johnson & Johnson, which last week raised its full-year outlook after stronger than expected pharmaceutical sales.
“Our results reflect the power of our innovation, the depth of our portfolio and the momentum in our pipeline,” said Joaquin Duato, Chairman and CEO, J&J.
Attention will now turn to AstraZeneca, which reports next week, followed by Bristol Myers Squibb, Sanofi, Pfizer, Merck & Co and Eli Lilly over the following fortnight.
Featured image: Taljat on Adobe Stock
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