By Helena Smolak

Novartis expects profit and sales to grow further this year after beating analysts' expectations in the fourth quarter, boosted by revenue from its key drugs.

The Swiss pharma major said Friday that it expects its core operating profit--one of its preferred metrics, which strips out exceptional items--for 2025 to grow in the high-single-digit to low-double-digit range on sales growth in the mid- to high-single digits at constant currency. This compares with the 22% profit increase on 12% sales growth that Novartis reported for 2024.

Core operating profit for the fourth quarter grew to $4.86 billion from $3.82 billion for the same period the year prior on sales that increased to $13.15 billion from $11.42 billion. Profit growth was mainly driven by higher sales that were partly offset by higher research-and-development investments, Novartis said.

Analysts polled by Visible Alpha had forecast $4.44 billion in core operating profit on $12.78 billion in sales.

Net profit rose to $2.82 billion from $2.64 billion.

Higher revenue from its key growth drivers--Entresto, immunology drug Cosentyx, breast-cancer treatment Kisqali, cholesterol treatment Leqvio and neuroscience medicine Kesimpta--offset a 1-percentage-point hit from generic competition.

Sales of its recently launched--and fastest-growing--drug Leqvio in the fourth quarter came in line with analysts' expectations. Best-seller Entresto--the patent of which expires around mid-year--and Kesimpta sales beat expectations, based on a consensus polled by Visible Alpha.

Although sales of closely watched prostate-cancer drug Pluvicto rose 28% at constant currency to $351 million, they missed analysts' expectations of $380 million, according to Visible Alpha.

The company raised its dividend to 3.50 Swiss francs for 2024 from 3.30 Swiss francs a year earlier.

Novartis confirmed its midterm guidance.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

January 31, 2025 02:51 ET (07:51 GMT)

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