Novartis CEO Vas Narasimhan discussed the company’s approach to acquisitions, emphasizing the need for continuous growth. The Swiss drugmaker recently acquired Avidity Biosciences for $12 billion, giving Novartis access to potentially lucrative experimental drugs that could generate billions in sales before 2030. Their third-quarter net sales increased 7% to $13.9 billion, with operating income rising 27% to $5.46 billion, slightly above analyst expectations.

Despite the positive results, Novartis shares fell 3.4% at the start of the trading session. The company’s strong performance was driven by sales growth of key drugs, including Kisqali, Pluvicto, Scemblix, and Kesimpta. Novartis has raised guidance for the past 10 quarters, maintaining sales and operating income growth forecasts for the current year.

Novartis, like other pharma giants, is closely following global updates on tariffs and U.S. efforts to lower drug prices. Recently, Pfizer and AstraZeneca struck “most favoured nation” agreements with the U.S. administration, aiming to reduce drug costs for consumers while providing companies a reprieve from tariffs. Analysts at UBS expect more agreements in the industry, including potentially for Novartis.

Read more at CNBC: Novartis has firepower for big M&A deals, says CEO