Steady ahead for Novartis following year of strategic investments

An analysis of the investment activity of Novartis (NOVN: VX) in recent years.

Novartis full-year results in line with investor expectations

On January 31 this year, Novartis released full-year results for 2023 that were in line with investor expectations, with net sales of $45.4 billion (+8% constant currency (cc) year on year (YoY) driven by leading brands Cosentyx (secukinumab), Entresto (sacubitril/valsartan), Kesimpta (ofatumumab), and Kisqali (ribociclib), though sales of Pluvicto (lutetium (177Lu) were weaker than expected due to supply challenges which the company has already dealt with through the expansion of new manufacturing plant in the USA and China. Operating income increased by 39% (cc, YoY) to $9.8 billion and EPS up by 70% (cc, YoY) to $4.13. The company updated mid-term guidance and forecasted net sales compound average growth rate (CAGR) 2023-2028 of 5% cc. The share price closed at 89.73 up 0.33% on the day (Figure 1).