Overview
- Novartis reported second-quarter net sales of $14.4 billion on Tuesday, a 3% rise driven by volume gains from newer medicines such as Kisqali, Scemblix, Kesimpta, Pluvicto and Leqvio.
- The company’s preferred profit measure, core operating profit, reached $5.94 billion in Q2 and beat analyst forecasts as cost cuts and launch volumes offset legacy declines.
- Entresto sales plunged roughly 50% to about $1.18 billion as US generic competition accelerated, and other older products also showed sharp erosion after patent expiries.
- Reported net income fell about 19% to roughly $3.26 billion because of higher interest and tax charges, while free cash flow fell and net debt rose to $39.4 billion after heavy acquisition and payout activity.
- Management reaffirmed 2026 guidance and is leaning on regulatory approvals, upcoming trial readouts and the agreed Myricx Bio purchase, expected to close in the second half of 2026, to replace lost sales.