Positive Outlook For Novartis As Company Capitalizes On Growing Treatment Opportunities, Analyst Highlights

On Tuesday, Novartis AG (NYSE:NVS) reported third-quarter sales of $12.823 billion, up 9% (+10% on constant currency), beating the consensus of $12.76 billion.

Guidance: Novartis also raised its 2024 full-year guidance again this year.

In a statement, Novartis said it expects full-year core operating income to grow by a “high teens” percentage, compared with previous guidance of a “mid-to-high teens” percentage.

Novartis forecasts full-year sales growth in the low double digits, having previously guided for high-single to low-double-digit growth.

Pelabresib filing was further delayed, triggering a $800 million impairment charge related to the $2.9 billion acquisition of MorphoSys.

Earlier this year, MorphoSys faced a burgeoning safety concern surrounding pelabresib.

Goldman Sachs notes that MorphoSys-related impairment charge is somewhat underwhelming, raising doubts about the company’s M&A strategy.

Truist notes that Novartis is concentrating on preparing the market for the PSMAFore label, which is expected to triple its addressable market.

They also pointed out that growth opportunities in China ...