Novartis, under the leadership of CEO Vas Narasimhan, has announced robust financial results for the full year of 2023. The company reported a 10% growth in net sales (constant currency), amounting to USD 45.4 billion, with core operating income increasing by 18% (constant currency). The growth was primarily driven by the exceptional performance of key products such as Entresto, Kesimpta, Kisqali, Pluvicto, and Scemblix.

commenting on 2023 results, Vas Narasimhan, CEO of Novartis, said: “Novartis completed its strategic transformation into a pure-play innovative medicines company and continued its relentless pursuit of sustainable shareholder value creation. Our robust operational performance continues, with strong double-digit top and bottom-line growth, for the quarter and full year. We delivered ten positive Ph3 readouts on assets with significant sales potential, over the past year. The very strong performance of our key growth drivers and pipeline underscores the confidence in our growth (5% cc CAGR 2023-2028) and margin (40%+ by 2027) mid-term guidance.”

The fourth quarter of 2023 saw a similar trend, with net sales growing by 10% (constant currency), reaching USD 11.4 billion. The strong performance of products like Entresto, Kisqali, Kesimpta, Cosentyx, and Pluvicto played a crucial role in this growth. The company reported a core operating income growth of 13% (constant currency) for the fourth quarter.

Noteworthy achievements during the quarter included multiple positive Phase 3 readouts, such as the FDA approval of Fabhalta for the treatment of paroxysmal nocturnal hemoglobinuria (PNH) and Cosentyx's approval for the treatment of moderate to severe hidradenitis suppurativa (HS) in adults.

The CEO, Vas Narasimhan, emphasized Novartis' completion of its strategic transformation into a pure-play innovative medicines company. The focus on four core therapeutic areas - cardiovascular-renal-metabolic, immunology, neuroscience, and oncology - has contributed to sustained growth and a clear strategic direction.

In terms of financials, Novartis reported a net income increase of 62% (constant currency), with earnings per share (EPS) growing by 70% (constant currency) to USD 4.13 for the full year. Free cash flow from continuing operations reached USD 13.2 billion, reflecting a 9% increase.

Looking ahead, Novartis is optimistic about its 2024 outlook, with an expected mid-single-digit growth in net sales and high-single-digit growth in core operating income. The CEO provided updated mid-term guidance, anticipating a 5% compound annual growth rate (CAGR) in net sales from 2023 to 2028, with a target core operating income margin of approximately 40% by 2027.

Novartis also declared a dividend of CHF 3.30 per share, representing a 3.1% increase for 2023. The company continues to prioritize a balanced approach between investment in the business, maintaining a strong capital structure, and delivering attractive returns to shareholders.