BASEL (dpa-AFX) - Novartis AG (NVS) Tuesday reported a relatively lower second quarter income, despite generating a modest increase in net sales, driven by strong growth in its oncology portfolio. The Swiss drugmaker also reaffirmed its fiscal 2026 guidance.
Company Profile
Novartis is a Swiss innovative medicines company focused on developing and commercialising prescription drugs across cardiovascular, renal, and metabolic diseases, immunology, neuroscience, oncology, and hematology.
The company's key blockbuster products include Entresto, Cosentyx, Kisqali, Kesimpta, and Pluvicto, with Entresto and Cosentyx among its top revenue contributors.
2026 Second Quarter Highlights
For the second quarter of 2026, the company's net income declined 19% to $3.26 billion from $4.02 billion a year earlier.
Basic earnings per share for the quarter declined 17% to $1.71 per share from $2.07 per share in the same period last year.
Core net income was $4.56 billion, or $2.41 per share, compared to $4.71 billion, or $2.42 per share in the prior year period.
Net sales marginally increased to $14.41 billion from $14.05 billion in the second quarter last year.
Sales were driven primarily by Oncology sales of $4.51 billion, reflecting a 35% rise in this quarter from $3.35 billion in the prior year.
The higher sales in the division included priority brands such as Kisqali, which increased 44%, Scemblix climbed 89%, and Pluvicto advanced 43%.
By division, Cardiovascular, Renal and Metabolism sales generated a total of $1.69 billion, a 36.4% decline from $2.65 billion in the period last year.
Despite the division's decline, Leqvio sales contributed to the sales growth by 59% to $0.48 billion this quarter from $0.29 billion for the same period last year.
Meanwhile, Novartis' top-selling product Entresto sales declined 50% to $1.18 billion for this quarter from $2.36 billion a year earlier.
The company's Immunology product line sales totaled to $2.78 billion, a 9% increase from $2.55 billion in the prior year, supported by Cosentyx sales.
Neuroscience sales increased 29% to $1.88 billion, driven in part by Kesimpta which recorded $1.42 billion sales from $1.08 billion in the same period last year.
Separately, the company's established brands drugs net sales slightly declined to $3.55 billion in this quarter from $4.04 billion in the second quarter last year.
Cash and cash equivalents on June 30, 2026, amounted $7.62 billion.
Operational Highlights
BLA for Del-zota (KPE179) was submitted to the FDA for accelerated approval in Duchenne muscular dystrophy (DMD).
The World Health Organization pre-qualified Coartem Baby, the first antimalarial developed for newborns and young infants.
Rhapsido met its primary endpoint in the Phase 3 RemIND study for chronic inducible urticaria or CIndU subtypes. While Del-brax of the Phase 1/2 FORTITUDE trial also met its primary and secondary endpoint in facioscapulohumeral muscular dystrophy (FSHD).
The Phase 3 INVEST-HD trial for Votoplam (HTT227) is actively enrolling patients with Huntington's disease.
Upcoming milestones
Results from the Phase III BEYOND study evaluating Zigakibart for treating IgAN, are anticipated in first half of 2027.
2026 Guidance
The company said it continues to expect fiscal 2026 net sales to grow low single-digit and core operating income to decline low single-digit.
NVS closed Monday's trade at $149.56, down 2.73%. In the pre-market, NVS is trading up 4.15% at $155.71.
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