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Mid-term sales guidance upgraded to +6% CAGR 2023-2028 and +5% 2024-2029
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Strong momentum in the business with 8 in-market brands with USD 3bn+ to USD 8bn+ peak sales potential and 15+ near-term submission-enabling readouts
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30+ high-value medicines in the pipeline expected to support continued mid-single digit sales growth beyond 2029
Basel, November 21, 2024 – Today Novartis announced an upgrade to its mid-term guidance, in advance of its Meet Novartis Management event for investors and analysts in London. Previous guidance for +5% sales CAGR 2023-2028 was upgraded to +6%, driven by strong momentum of in-market growth drivers and upcoming launches, most of which have expected US exclusivity in the 2030’s or beyond.
Rolling forward its mid-term guidance with strong 2024 performance as the base year, Novartis now expects to grow sales at +5% CAGR 2024-2029. The company remains on track to deliver core operating income margin1 of 40%+ by 2027, benefiting from continued strong sales growth and productivity improvements.
“Novartis has completed its transformation into a pure-play innovative medicines company, with deep expertise and capabilities across our core therapeutic areas and technology platforms. Our focus has allowed us to sharpen our commercial execution and increase our peak sales estimates for Cosentyx, Kisqali, Kesimpta, Pluvicto and Leqvio, and we have more than 15 submission-enabling readouts in the coming years to further bolster our growth profile,” said Vas Narasimhan, CEO of Novartis. “Longer term, we’ve identified more than 30 assets in the pipeline with significant potential to rejuvenate our portfolio and support mid-single-digit growth post 2029. Taken together, we remain confident in our focused strategy and ability to deliver sustainable value creation for shareholders.”
While the majority of the company’s portfolio comes from its internal innovation engine, value-creating bolt-ons remain an important element of the Novartis capital allocation policy. Novartis has executed more than 30 strategic deals in the last two years, primarily in the exploratory to preclinical stage. Recent examples include the acquisition of Kate Therapeutics, which complements the company’s ongoing efforts to innovate new gene therapies for neuromuscular disorders, and the worldwide licensing and collaboration agreement with Ratio Therapeutics for a next-generation SSTR2-targeting radiotherapeutic candidate, which adds to the company’s deep radioligand therapy pipeline.
During the event today, investors and analysts will hear from CEO Vas Narasimhan and have the opportunity to engage with senior leaders from across the company in an open Q&A format. A live webcast of the event will be available on our website at https://www.novartis.com/investors/event-calendar, along with a copy of the CEO presentation. A replay will be available once the event has concluded.
1 Core results are non-IFRS measures. An explanation of non-IFRS measures can be found on page 46 of the 3Q24 Interim Financial Report.
About Novartis
Novartis is an innovative medicines company. Every day, we work to reimagine medicine to improve and extend people’s lives so that patients, healthcare professionals and societies are empowered in the face of serious disease. Our medicines reach more than 250 million people worldwide.