FRANKFURT (Reuters) – Novartis raised its full-year profit forecast on Tuesday on the back of lower costs, the success of a breast cancer drug trial and progress in increase in the production of a drug against prostate cancer.
The Swiss pharmaceutical group said in a statement that excluding Sandoz, its soon-to-be-split generic drugs arm, the group’s “core” operating profit increase is now expected to be more than 5% (“high single digit “), against around 5% (“an average figure”) previously.
“Our excellent start to the fiscal year and our confidence in our growth engines allow us to raise our guidance for fiscal 2023,” Chief Executive Vas Narasimhan said in a statement.
The group’s first-quarter sales rose 3% to $12.95 billion (€11.74 billion), while analysts had expected $12.6 billion, according to Refinitiv data.
Higher-than-expected revenues from Cosentyx, a drug for psoriasis and arthritis, contributed to the increase.
Kesimpta, a self-administered monthly injection treatment for multiple sclerosis (MS), and breast cancer treatment Kisqali also contributed to the sales growth, the group said.
A trial in March showed Kisqali reduced the risk of recurrence in women diagnosed with early-stage breast cancer, an important victory for the chief executive, under pressure from investors to improve prospects for drug development in the short term. .
The Swiss pharmaceutical group, which has struggled to ramp up production of the prostate cancer treatment Pluvicto, announced this month that the US Medicines Agency, the FDA, had cleared the Millburn factory in the New Jersey, to produce the drug.
“Focusing on our core geographies and brands, and streamlining the different levels of management, allows us to achieve additional savings,” the chief executive told a news conference.
The planned spin-off from Sandoz is on track in the second half of 2023, the group said.
On the Zurich Stock Exchange, Novartis shares gained 1.8% in the morning.
(Report Ludwig Burger; written by Rachel More and Jason Neely, Diana Mandiá, edited by Blandine Hénault)
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