Novartis aims for 5% annual sales growth through 2027

Novartis has dialled up its sales growth target to 5 per cent per year until 2027, citing demand for innovative drugs after it sold off its generic-drugs business.

The medium-term target, which excludes any foreign exchange effects, is mainly driven by six drugs, led by Kisqali, it said in a presentation on Tuesday.

The breast cancer drug was shown this year to help a wider patient group in a study, in a major win for CEO Vas Narasimhan.

The sales forecast, up from a previous revenue growth target of 4 per cent through 2027, is also underpinned by demand for Pluvicto, a precision radiotherapy against prostate cancer, and self-administered multiple sclerosis (MS) shot Kesimpta.

Last month, the Basel-based drugmaker spun off and listed generic drugs business Sandoz and raised its 2023 earnings forecast for the third time, citing cost cuts and higher-than-forecast prices for the MS drug.

The Swiss company, which is updating investors on its research and development on Tuesday, reiterated it was aiming for a core operating income margin of at least 40 per cent by 2027, up from 35 per cent last year.

It also reiterated a focus of its drug development on the four therapy areas cardio-renal care, immunology, neuroscience, oncology and haematology, according to a statement on Tuesday.