Q3 2025 Novartis AG Earnings Call Transcript
Key Points
- Novartis AG (NVS) reported a 7% increase in both sales and core operating income, with a core margin of 39.3%.
- The company achieved significant pipeline milestones, including FDA approval for Rhapsido and positive Phase III results for several drugs such as Ianalumab and Pluvicto.
- Priority brands like Kisqali, Kesimpta, and Pluvicto showed robust growth, with Kisqali growing 68% and Kesimpta 44% in Q3.
- Novartis AG (NVS) reaffirmed its full-year guidance, expecting high single-digit growth in net sales and low teens growth in core operating income.
- The company completed a $15 billion share buyback program and launched a new up to $10 billion buyback program, demonstrating strong capital return to shareholders.
- Novartis AG (NVS) is facing challenges from loss of exclusivity (LOE) for key drugs like Entresto, Tasigna, and Promacta, impacting sales.
- The company experienced negative gross to net true-ups in the US, mainly related to Medicare Part D redesign, affecting Q3 results.
- Cosentyx growth was impacted by a one-time effect, with a 1% decline in constant currencies, and the market for HS is not growing as expected.
- The proposed acquisition of Avidity is expected to cause short-term core margin dilution of 1% to 2% over the next three years.
- There are ongoing challenges in the commercialization of Pluvicto, such as reimbursement and referral networks, which need to be addressed for sustained growth.
Good morning and good afternoon, and welcome to the Novartis Q3 2025 results release conference call And live webcast. (Operator Instructions) The conference is being recorded. (Operator Instructions)
A recording of the conference call, including the Q&A session, will be available on our website shortly after the call ends. With that, I would like to hand over to Ms. Sloan Simpson, Head of Investor Relations.
Please go ahead, madam
Thank you, Sharon. Good morning and good afternoon, everyone, and welcome to our Q3 2025 earnings call. The information presented today contains forward-looking statements that involve known and unknown risks, uncertainties and other factors. These may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Please refer to the company's Form 20-F on file with the US.
Securities and Exchange Commission for a description of some of these factors. The discussion
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