Novartis, the Swiss pharmaceutical company, has continued the strong growth from last year in the first quarter of 2025 and has once again raised its forecast for the current year. This marks the ninth consecutive quarter in which Novartis has increased its forecast, indicating a continuous positive development in the pharmaceutical sector.
Financial Highlights of the First Quarter 2025
- Revenue: Novartis generated revenue of $13.2 billion in the first quarter of 2025, which represents a 12 percent increase compared to the same period last year. At constant exchange rates, the increase was even 15 percent.
- Operating Income: Operating income rose by 38 percent to nearly $4.7 billion. Net income increased to $3.6 billion, compared to $2.7 billion in the previous year.
- Core Operating Profit: Adjusted core operating profit stood at $5.6 billion, which was better than the expected consensus of analysts.
Drivers of Growth
The growth was driven primarily by strong sales of drugs such as Entresto (heart medication), Kisqali (cancer medication), Kesimpta (MS medication), Cosentyx (psoriasis medication), and Leqvio (cholesterol-lowering medication). Notably, Entresto alone generated nearly $2.3 billion in revenue.
Outlook for 2025
Novartis has raised its forecast for the entire year 2025. The company now expects revenue growth in the high-single-digit percentage range (previously: mid to high-single-digit range). For core operating profit, a low-double-digit percentage increase is forecast (previously: high-single-digit to low-double-digit range).
Impact on Investors in the German-Speaking Region
This positive development could also affect stock prices and may be of interest to investors in the German-speaking area. A strong start to the year and the continuous raising of the forecast indicate a stable and growing position of Novartis in the pharmaceutical market, which could make investments in the sector attractive.
Overall, Novartis’ strong performance in the first quarter of 2025 shows that the company continues to be on a growth trajectory, sending positive signals for both investors and the entire pharmaceutical sector.