New drug sales offset the impact of the expiration of the Entresto patent, Novartis AG Sponsored ADR pharmaceutical (NVS.US) business profits increased by 6% in Q3.

Swiss pharmaceutical company Novartis AG Sponsored ADR (NVS.US) has set off a frenzy of acquisitions this year. With new drug growth surpassing stagnant revenue from its core heart drug Entresto, the company achieved a 6% increase in operating profit. Novartis AG Sponsored ADR's adjusted operating profit for the third quarter rose to $5.46 billion, slightly higher than the analysts' general expectation of $5.4 billion. The financial report shows that Novartis AG Sponsored ADR's revenue for the third quarter was $13.91 billion, an 8.4% year-on-year increase exceeding expectations, with a non-GAAP EPS of $2.25, lower than the expected $2.31. To strengthen its research pipeline and compensate for sales declines due to patent expiration, Novartis AG Sponsored ADR actively pursued acquisitions and licensing deals worth up to $30 billion this year, including a $12 billion acquisition of American biotech company Avidity. Novartis AG Sponsored ADR, which has raised its annual performance forecast twice, maintains its 2025 financial guidance, expecting sales to achieve "mid to high single-digit" growth and adjusted operating profit to achieve "low double-digit" growth. Star heart drug Entresto lost patent protection this year, with sales of $1.88 billion in the third quarter. The drug has become Novartis AG Sponsored ADR's best-selling drug over the past ten years, with global sales reaching $7.82 billion in 2024. Analysts predict sales of the drug for this quarter to be $1.77 billion, according to LSEG data. In July, a US federal court rejected Novartis AG Sponsored ADR's request to stop MSN Pharma from selling generic versions of Entresto. According to LSEG data, analysts predict sales of the drug to exceed $8 billion this year, but to decrease to around $6 billion by 2026. The psoriasis treatment drug Cosentyx faces competition from UCB's drug Bimzelx in the treatment of specific types of psoriasis and arthritis, with sales remaining relatively stable at $1.7 billion. The breast cancer drug Kisqali, launched last year, achieved sales of $1.33 billion.