Novartis Raises 2025 Earnings Forecast as Key Therapies Drive Growth

Novartis (SIX:NOVN) raised its full-year earnings forecast on Tuesday, fueled by strong first-quarter demand for key therapies such as Leqvio, Kisqali, and Kesimpta. The Swiss pharmaceutical giant now expects 2025 operating income, excluding special items, to rise by a "low double-digit" percentage, improving from its earlier "high single to low double-digit" guidance. This revision follows a 22% increase in operating income in 2024.

First-quarter net income, adjusted for one-time items, surged 22% to $4.48 billion, surpassing analyst expectations of around $4.2 billion. Kisqali, Novartis’ breast cancer treatment, was a standout performer, with quarterly revenue jumping 52% to $956 million. Meanwhile, sales of Leqvio, the company's cholesterol-lowering drug, climbed 70% to $257 million, gaining momentum after a slower initial launch.

The company’s strong quarterly results come as Novartis plans to invest $23 billion in expanding and building ten manufacturing facilities across the United States. The move aims to safeguard supply chains amid rising concerns over potential drug import tariffs under U.S. President Donald Trump’s trade policies. Novartis’ expanded U.S. investment underscores its strategy to strengthen domestic production and reduce vulnerability to shifting international trade dynamics.

With key therapies gaining market traction and major investment initiatives underway, Novartis is positioning itself for sustained growth despite a volatile global environment.