Novartis to continue active deal-making strategy

SWITZERLAND – Novartis, one of the most active pharmaceutical dealmakers in 2024, plans to maintain its momentum this year with additional bolt-on acquisitions aimed at long-term growth.

Speaking during a media call on Friday, CEO Vas Narasimhan confirmed the company’s commitment to strategic deals that enhance its future pipeline.

“We will continue our strategy to look for primarily bolt-on acquisitions that we think will bolster our growth in the 2030 and beyond period,” Narasimhan explained while discussing Novartis’ fourth-quarter and full-year 2024 earnings.

He highlighted that the company had completed 30 deals last year, mostly focusing on early-stage opportunities, which reflects its aggressive approach to mergers and acquisitions.

Novartis’ financial performance in 2024 underscored the success of its strategy. Net sales grew 16% year-over-year in the fourth quarter, reaching US $13.1 billion—higher than the US $12.82 billion forecast by analysts. For the full year, sales rose by 12% to US $50.32 billion.

Several products were key drivers of this growth. The heart failure medication Entresto saw a 34% increase in sales compared to the previous year, generating nearly US $2.2 billion in the quarter.

Other strong performers included the anti-IgG1 antibody Cosentyx, which earned almost $1.6 billion, multiple sclerosis therapy Kesimpta with US $950 million, and breast cancer treatment Kisqali, which brought in US $902 million.

However, not all products delivered as expected. The prostate cancer therapy Pluvicto earned US $351 million, which some analysts described as below expectations.

Despite this, BMO Capital Markets analysts praised Novartis’ overall performance, calling the Q4 results strong even with “softness in some key products.”

Entresto’s future is facing challenges due to generic competition. The FDA has already approved at least four generic versions, including one from MSN Pharmaceuticals, which has been the focus of an ongoing legal battle.

Recently, Novartis scored a temporary win when the U.S. Court of Appeals blocked MSN Pharma’s generic from entering the market while the case is still under review.

CFO Harry Kirsch confirmed that Novartis is determined to protect Entresto’s exclusivity in the coming months.

Beyond its product performance, Novartis made several high-profile deals in 2024, signaling its focus on innovation.

Among these was a US $1 billion upfront payment and up to US $1.9 billion in milestone commitments for PTC Therapeutics’ Huntington’s disease drug.

The company also acquired Kate Therapeutics, a California-based biotech, in a deal valued at up to US $1.1 billion.

Other notable agreements included a US $2.2 billion partnership with Monte Rosa for molecular glue therapies, a nearly US $2.9 billion expansion of its collaboration with PeptiDream, and a potential US $1 billion deal with Flagship’s Generate:Biomedicines.

Additionally, Novartis signed a more than $4 billion agreement with Shanghai Argo early last year.

This continued focus on strategic partnerships and acquisitions has positively impacted Novartis’ market performance.