Novartis raises mid-term sales outlook, acquires Kate Therapeutics, aims for increased operating income margin

From Nasdaq: 2024-11-22 13:37:00

Novartis (NVS) has increased its mid-term sales guidance, expecting a 6% compound annual growth rate (CAGR) during 2023-2028. This is up from the previous estimate of 5%, driven by strong momentum in key drugs and upcoming launches. The company aims for a 40%+ core operating income margin by 2027.

Novartis also acquired Kate Therapeutics to bolster its gene therapy portfolio. The deal includes up to $1.1 billion for shareholders, focusing on AAV-based gene therapies for neuromuscular diseases. Additionally, Novartis collaborated with Ratio Therapeutics for a next-generation radiotherapeutic candidate, adding to its radioligand therapy pipeline.

With a focus on strategic acquisitions and core therapeutic areas, Novartis aims to expand its business. The company’s third-quarter performance exceeded estimates, reflecting strong momentum across key drugs. Novartis operates as a single global segment and continues to strengthen its pipeline with acquisitions like the recent Kate Therapeutics deal.

Novartis currently holds a Zacks Rank #3 (Hold). Better-ranked stocks in the pharma/biotech sector include Pfizer (PFE) and Gilead Sciences (GILD), both with a Zacks Rank #2 (Buy). Pfizer’s earnings estimates have risen for 2024 and 2025, while Gilead Sciences has shown positive earnings surprises and estimates for 2024 and 2025.



Read more at Nasdaq: Novartis Raises Sales Outlook for Mid-Term, Acquires Kate Therapeutics