Novartis stock closed relatively flat Friday after the drugmaker beat fourth-quarter expectations, largely on the back of its heart failure drug Entresto.
Entresto is Novartis' biggest moneymaker. During the December quarter, the drug generated $2.18 billion in sales. On a year-over-year basis, sales surged 33% and beat forecasts for $2.01 billion, according to FactSet.
But the patent protecting Entresto will expire in July, leaving the heart failure drug open to generic competition. In fact, Novartis already expects U.S. competition for Entresto, Tasigna and Promacta to begin in mid-2025. Tasigna is a cancer drug, while Promacta treats low blood platelets.
The latter drugs are much smaller contributors to Novartis' topline. Their combined sales were $994 million in the fourth quarter.
Novartis stock rose close down a small fraction at 104.72, paring earlier gains.
Novartis Stock: Earnings, Sales Top Forecasts
Novartis wrapped the fourth quarter with core earnings of $1.98 per share and $13.15 billion in sales. Earnings jumped 29% and beat forecasts for $1.80 a share. Sales rose 15% and topped the Street's call for $12.84 billion, according to FactSet.
Novartis said it also saw strength from Kesimpta, Kisqali, Cosentyx and Leqvio in the December quarter. Kesimpta treats multiple sclerosis. Kisqali is a cancer drug, while Cosentyx treats immunology conditions. Leqvio is a cholesterol med.
Notably, Novartis shifted the timeline on its Phase 3 study of a drug called pelacarsen in patients with established cardiovascular disease and elevated Lp(a). Lp(a) or lipoprotein A is similar to "bad" LDL cholesterol. Elevated Lp(a) is considered a risk factor for cardiovascular disease. Novartis now expects its study to wrap in 2026.
"The event-driven trial was expected to readout in ~mid-25 and represents a major catalyst in the cardiometabolic space," Leerink Partners analyst Mani Foroohar said in a report.
A slew of other companies are targeting Lp(a), including Amgen, Eli Lilly, Crispr Therapeutics and NewAmsterdam Pharma. Ionis Pharmaceuticals is collaborating with Novartis on its Lp(a)-targeting drug.
