Novartis back on track for growth in third quarter

Novartis is back on track for growth in the third quarter Keystone-SDA

At Swiss pharmaceuticals giant Novartis, the negative impact of generic medicines continued to ease in the third quarter. For the full year, management is revising its previous outlook for core operating profit upwards.

According to a statement released on Tuesday, Novartis generated revenue of $14.5 billion (CHF12 billion) in the third quarter. This is 4% higher than in the same period last year. At constant exchange rates, revenue also rose by 4%.

This means that Novartis’s business performance is continuing to gain momentum: after the group had reported a decline in revenue in the first quarter due to the launch of generic versions of key blockbuster drugs, it had already returned to a growth trajectory in the second quarter.

Novartis had recently emphasised on several occasions that the erosion caused by generic medicines was likely to have peaked. Key revenue drivers such as Entresto, Promacta and Tasigna lost their patent protection last year. Group CEO Vas Narasimhan had emphasised that the negative impact is likely to be significantly greater in the first half of 2026 than in the second.

Research setback weighs on results

In terms of operating profit, the Basel-based company recorded a slump of 59% to $1.8 billion. The bottom line was a consolidated profit of $1.2 billion, down from $3.9 billion in the same period last year. The reason for the sharp decline is the partial write-down of $1.9 billion relating to the failed product candidate Del-Desiran. Novartis has recently been grappling with various setbacks in late-stage research.

For analysts, however, the core operating profit – adjusted for various factors – is the key figure. At $6 billion, this figure rose compared with the previous year and exceeded the AWP consensus of $5.6 billion.

For the full year, Novartis is revising its previous profit guidance. Core operating profit is now expected to remain stable or show a slight increase. Novartis had previously forecast a decline in the low single-digit percentage range. Management continues to expect revenue growth at constant exchange rates to be in the low single-digit percentage range.

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Translated from German, reviewed by an English Department journalist.