Novartis Q3 2025 Performance Review: Star Products Drive Strong Growth, Strategy Focuses on Innovation and Efficiency

Based on the outstanding performance in the first nine months, Novartis maintains an optimistic outlook for the full year 2025, expecting net sales to continue achieving double-digit growth and core operating profit margins to remain at high levels. After the earnings disclosure, Novartis' stock price initially fell by more than 3% during trading.

Looking at specific business areas, Novartis' four major segments - Cardiovascular-Renal-Metabolism, Immunology, Neuroscience, and Oncology - all achieved notable growth, reaching $2.185 billion (+4%), $2.611 billion (+4%), $1.609 billion (+29%), and $4.375 billion (+16%) respectively. The third-quarter sales growth was primarily driven by the continued strong performance of several products, including Kisqali (+68%), Kesimpta (+44%), Pluvicto (+45%), Leqvio (+54%), and Scemblix (+95%).

In the Cardiovascular-Renal-Metabolism area, Novartis' pillar product Entresto saw a year-over-year decline in revenue this quarter, failing to continue the growth trend from the previous quarter (+22%). This was mainly due to dual pressures from generic drugs and healthcare price reductions in the United States, although the company stated that performance in overseas markets remained strong. To offset the impact of declining U.S. business, Novartis announced in March this year an adjustment to its cardiovascular business commercialization strategy, actively laying out other high-potential cardiovascular drugs.

The long-acting PCSK9 product Leqvio continued its rapid growth, with third-quarter revenue of $308 million, a significant 54% year-over-year increase. It is almost certain to surpass the billion-dollar mark for the full year. Novartis is actively expanding the drug's indications, such as removing statin restrictions in the U.S. (previously approved as an adjunct therapy to diet and maximum tolerated statin therapy) and submitting new indication applications for adolescent-related diseases, which is expected to further expand market share.

Additionally, Novartis' two kidney disease therapies, CFB inhibitor Fabhalta and ETA antagonist Vanrafia, are rapidly penetrating the U.S. and other markets. In the third quarter of this year, Vanrafia also received its first approval for marketing in China.

In the immunology field, Novartis' flagship product Cosentyx (secukinumab) remained generally stable, with cumulative revenue of $4.861 billion (+7%) in the first three quarters. Recently, the drug also achieved positive results in a Phase III clinical study for polymyalgia rheumatica (PMR), the second most common inflammatory disease in adults. Novartis remains fully confident in Cosentyx reaching peak sales of over $8 billion.

In the neuroscience area, Kesimpta still has significant market demand. With the convenience of at-home injections, the drug continued its high-speed growth trend, becoming the main driver of growth in the neuroscience segment.

In oncology, the CDK4/6 inhibitor Kisqali (ribociclib) further confirmed its clinical benefits in early-stage breast cancer studies, with its commercial value continuing to be realized. Cumulative revenue for the first three quarters reached $3.462 billion (+63%).

Novartis' two radiopharmaceuticals, Pluvicto and Lutathera, generated a combined revenue of $2.002 billion in the first three quarters, further solidifying the company's leading position in the radiopharmaceutical field. Notably, Pluvicto's market share expanded further after extending its use to pre-chemotherapy mCRPC patients. Additionally, a combination therapy of Pluvicto with current standard treatments has shown promising results in PSMA+ metastatic hormone-sensitive prostate cancer (mHSPC) patients. Novartis plans to submit a new indication application for this by year-end. Furthermore, Pluvicto is expected to receive approval in China in the fourth quarter, potentially opening up new growth opportunities.

In the oncology segment, Scemblix demonstrated impressive performance this quarter, with Q3 revenue growing 95% year-over-year. Cumulative sales for the first three quarters reached $894 million, an 84% increase compared to the previous year. As a first-in-class STAMP allosteric inhibitor, Scemblix addresses a high clinical demand for treatments that combine high efficacy with good tolerability in chronic myeloid leukemia patients who have previously received two or more tyrosine kinase inhibitors. Moreover, Scemblix is rapidly gaining market share in earlier, first-line indications.

To strengthen its long-term pipeline, Novartis made two strategic acquisitions this quarter:

– A $1.4 billion acquisition of Tourmaline to bolster its cardiovascular disease portfolio.

These transactions are highly synergistic with Novartis' existing pipeline, demonstrating the company's commitment to building an industry-leading R&D pipeline through external innovation.

Novartis' Q3 2025 results validate the success of its strategic transformation into a "pure-play innovative medicines company." Driven by its portfolio of star products, the company has demonstrated strong business resilience and growth quality. Through continued investment in emerging technology platforms (such as gene therapy, RNA therapeutics, and radiopharmaceuticals) and strategic acquisitions, Novartis is continuously reinforcing its leadership position in global pharmaceutical innovation.