Novartis Q1 Profit Tops Market, Lifts FY24 View

 Novartis AG's shares were gaining more than 4 percent in Switzerland and more than 5 percent in pre-market activity on the NYSE after the Swiss drug major reported Tuesday higher first-quarter profit, above market estimates, with strong sales growth. The company also raised its fiscal 2024 outlook for growth in sales and core operating income.

Further, Novartis said it plans to propose Giovanni Caforio as Chair of the Board of Directors at the AGM in 2025. The 12-year term of Joerg Reinhardt as Chair of the Board of Directors ends as scheduled in 2025, when he will retire and not be available for re-election at the Annual General Meeting.

Vas Narasimhan, CEO of Novartis, said, "Novartis continued our strong momentum with both sales growth and core margin expansion in Q1. Our performance was broad-based, across all key growth brands and geographies, allowing us to raise guidance for the full year 2024. We continued to advance our pipeline in Q1, with submission-enabling data for Scemblix first-line, Pluvicto pre-taxane and remibrutinib in CSU. The momentum in our business and pipeline gives us continued confidence in our mid- and long-term growth outlook."

For fiscal 2024, the company now expects net sales to grow high-single to low double-digit, compared to previously expected mid-single-digit growth. Core operating income is now projected to grow low double-digit to mid-teens from earlier estimate of high single-digit growth.

In its first quarter, net income was $2.69 billion, higher than last year's $2.29 billion. Basic earnings per share were $1.31, up from $1.09 in the prior year. The prior year's net income from continuing operations was $2.15 billion or $1.02 per share.

Core net income was $3.68 billion or $1.80 per share, compared to last year's $3.61 billion or $1.71 per share. The prior year's core net income from continuing operations was $3.23 billion or $1.54 per share.

https://www.rttnews.com/3440635/novartis-q1-profit-tops-market-lifts-fy24-view-proposes-new-chair-stock-up.aspx