Novartis Upgrades Mid-Term Sales Growth Outlook

Novartis has upgraded its mid-term sales growth guidance, projecting a 6% compound annual growth rate (CAGR) from 2023 to 2028, up from the previous 5%, driven by strong momentum from existing products and anticipated new launches primarily in cancer and immunological areas. The company expects to maintain a 5% CAGR from 2024 to 2029 and aims for a core operating income margin of over 40% by 2027. CEO Vas Narasimhan highlighted growth potential from over 30 pipeline assets and recent strategic acquisitions to strengthen the portfolio. Novartis's stock has seen positive movement, reflecting confidence in its strategy, which includes significant contributions from eight marketed brands expected to generate substantial peak sales. The company remains committed to value-creating mergers and acquisitions but takes a cautious approach to large deals.