Novartis Profit Beats Estimates at $5.94 Billion as New Cancer Drugs Offset Entresto's 50% Sales Drop

The Quick Take

• Novartis reported $5.94 billion quarterly profit, beating estimates despite Entresto sales plunging approximately 50%.
• Newer cancer medicines including Kisqali and Pluvicto offset the heart failure drug's major patent cliff revenue loss.
• Novartis maintained full-year guidance, signaling the oncology portfolio transition is proceeding on the company's plan.

Novartis (NYSE: NVS) reported quarterly profit that beat analyst estimates, with earnings reaching approximately $5.94 billion supported by strong performance from the company's newer oncology portfolio, which more than offset a dramatic 50% decline in Entresto sales. Entresto, once Novartis's flagship heart failure treatment and a multi-billion-dollar revenue driver, has faced significant competitive pressure from generic and biosimilar entrants following patent expiration in key markets — a transition that Novartis management had anticipated and communicated to investors as part of the company's multi-year portfolio repositioning strategy centered on its cancer medicine franchise.

The company maintained its full-year guidance despite the Entresto headwind, signaling management confidence in the cancer portfolio's ability to sustain profitability through the drug's revenue loss. Novartis's oncology lineup includes Kisqali (breast cancer), Kymriah (cell therapy), and Pluvicto (prostate cancer radioligand therapy) — each representing a distinct and growing therapeutic modality where the company holds meaningful competitive positioning. The beat-and-maintain configuration of the quarterly results is a constructive outcome for NVS shareholders, demonstrating that the portfolio transition from Entresto dependency to oncology leadership is proceeding on the trajectory the company had outlined at its most recent investor day.

For pharmaceutical sector investors, Novartis's results illustrate the dual dynamic of patent cliff revenue loss and innovation pipeline compensation that defines the business cycle of large-cap biopharma companies. The Entresto sales collapse — from billions in peak revenue to a significantly smaller base as generics enter — had been a known but significant risk event that Novartis had several years to prepare for through R&D pipeline development. The ability to replace a major revenue franchise with cancer drugs in a single fiscal year is a material execution milestone. Investors monitoring AstraZeneca, Pfizer, and Bristol Myers Squibb for similar patent cliff exposure will watch Novartis's transition as a benchmark for successful portfolio management.

Synthesized from 1 source.