Business · Companies · 7 hrs ago
Novartis raises full-year profit outlook after third-quarter growth
Novartis reported $14.5 billion in third-quarter revenue, up 4% from a year earlier.
The Swiss drugmaker said the sales impact from generic competition continued to ease, after cheaper copies of major medicines hurt revenue earlier in the year.
A $1.9 billion write-down for failed drug candidate Del-desiran helped push quarterly net profit down to $1.2 billion from $3.9 billion a year earlier.
The write-down followed a setback in late-stage research, but adjusted core operating profit reached $6 billion, above analysts’ average estimate of $5.6 billion.
Novartis now expects full-year core operating profit to be stable or rise slightly, instead of falling by a low single-digit percentage as it had previously forecast.
It still expects low single-digit revenue growth for the year, while the company is counting on newer medicines to offset sales lost to generic competition.
Novartis recorded a $1.9 billion write-down in the third quarter after its drug candidate Del-desiran failed.
The write-down contributed to a fall in quarterly net profit to $1.2 billion from $3.9 billion a year earlier.
The company reported third-quarter revenue of $14.5 billion, up 4% year over year.
Novartis raised its full-year outlook for core operating profit to stable or slightly higher.
CEO Vas Narasimhan described the market reaction to research setbacks as possibly exaggerated, while some market observers remained skeptical.
- Who
- Novartis, the Swiss pharmaceutical company.
- What
- It recorded a $1.9 billion write-down on the failed drug candidate Del-desiran.
- When
- In the third quarter of 2026; the results were reported on October 27, 2026.
- Where
- Novartis is based in Basel, Switzerland. The candidate was acquired in the United States.
- Why
- Del-desiran did not show the desired effect in development. It was being tested for an inherited muscle disease.
Novartis CEO Vas Narasimhan
Skeptical market observers
Market reaction
Novartis CEO Vas Narasimhan
Narasimhan called the share-price reaction to research setbacks possibly exaggerated and said setbacks in clinical trials are normal.
Skeptical market observers
Many market observers were skeptical, and two late-stage drug failures had helped drive the share price down almost 14% over two trading days.
Research acquisition
Novartis CEO Vas Narasimhan
Narasimhan said the Avidity Biosciences acquisition brought Novartis three potential new medicines and could create substantial value.
Skeptical market observers
The NZZ report said some market observers were skeptical about the setback and the company’s prospects.
Novartis acquired Avidity Biosciences and obtained Del-desiran.
Two potential medicines failed to show the desired effect in late-stage clinical development, and Novartis shares fell almost 14% over two trading days.
Novartis recorded a $1.9 billion write-down on Del-desiran.
Novartis reported third-quarter results and raised its full-year core operating profit outlook.
- Write-down
- $1.9 billion on Del-desiran
- Third-quarter net profit
- $1.2 billion, down from $3.9 billion a year earlier
- Third-quarter revenue
- $14.5 billion, up 4%
- Core operating profit
- $6.0 billion, compared with an AWP consensus of $5.6 billion
- Avidity Biosciences acquisition
- $12 billion, completed in February 2026
4 sources
What people are saying
perhaps exaggerated reaction
enormous value creation
All of this together could make the drug Novartis’s biggest product to date