Novartis reported better-than-expected sales and earnings for the second quarter, driven by strong performance from its new ...
What Vasant Narasimhan said
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Novartis CEO Vasant Narasimhan said the company delivered at the upper end of its full-year guidance in the first half of 2026 despite navigating the largest patent expiries in its history, and he reaffirmed the 5-6% growth target through the end of the decade. He declined to raise guidance, citing plans to invest in pipeline and launches in the second half, with a reevaluation in Q3. He highlighted Kisqali and Entresto as key growth drivers, with peak sales of $10 billion and over $6 billion respectively, and Leqvio at $4 billion plus. He identified Remibrutinib in multiple sclerosis and deldisiran for DM1 as the two most significant upcoming phase three readouts. On pricing, he noted the impact of most-favored-nation agreements with the US government and criticized Germany's recent law as a setback. He said only 60% of new medicines launch timely in Europe and predicted that percentage will decline.
Key takeaways
Reaffirmed 5-6% growth through 2030, declining to raise guidance despite a strong first half, with Q3 reevaluation planned.
Kisqali and Entresto are firing on all cylinders with peak sales of $10 billion and over $6 billion, respectively.
Remibrutinib in multiple sclerosis and deldisiran for DM1 are the two most watched phase three readouts in the back half of 2026.
Radioligand therapy could become a $25-30 billion segment, with Pluvicto a $5 billion plus asset.
Only 60% of new medicines launch timely in Europe today, and that percentage is expected to decline.
0:00But still, some questions: with such a big beat this quarter, why not raise the guidance for the full year?
0:59When we start to talk about some of those names, like a and others, can they make up for the deficit off the loss of that patent protection?
2:13But when you think about the pipeline here that you have over the next 6 to 12 months, which readout do you think has the most potential to potentially change the trajectory for Novartis?
3:34What do your own internal modeling and calculations tell you about what that growth picture looks like?
4:52Do you have the manufacturing capacity and just the distribution pipeline to handle any material increase in demand?
6:07Have you found the balance between what you think you are going to be able to price on a competitive basis relative to maybe what pressure has come from the government?
9:02And I wonder, you know, what are the necessary ingredients that you would need to see when evaluating one of those potential bigger ticket deals?
The headline here is the return to sales growth in the most recent quarter, a reaffirmation of your full year guidance. But still, some questions: with such a big beat this quarter, why not raise the guidance for the full year?
Yeah, thanks for the time, Romina. I really feel like this year has been a tale of two sides. On the first half of the year, we needed to navigate these expiries, the largest patent expiries in our history, and then we get into the second half to a period of now growth that we expect to sustain over the coming years to deliver the 5 to 6% growth that we've outlined. Our second half is going to be about investing in the pipeline and investing in the launches that will fuel that growth. So we saw, you know, really deliver at the upper end of our guidance in the first half, but we still think it's prudent not to raise and to actually maintain our investment levels and ensure that we're setting up well for this next phase of growth going forward. And of course, we'll reevaluate in quarter three based on how the numbers flow.
So investors are obviously looking at the balance between the loss of patent protection on two or three of your drugs that had been big winners for you, and of course, a new pipeline of products with that patent protection. When we start to talk about some of those names, like a and others, can they make up for the deficit off the loss of that patent protection?
Yeah, we feel really confident. I mean, when you look at growth in quarter two, I think that's showing that our big medicines, because they've done Kisqali and because of Entresto, with $10 billion of peak sales, and over $6 billion plus peak sales, are firing on all cylinders and can carry us through the end of the decade. But what's really exciting is the rest of our cancer portfolio, drugs like Symbicort and Fluvector performing extremely well. Our cardiovascular medicine, Leqvio, had an outstanding quarter and that's a good drug. We've got it to $4 billion plus peak sales. And then we have a few new launches that have just kicked off, drugs like Remibrutinib, taken together. We think that gives us more than enough to actually grow in that 5 to 6% range through the end of the decade. And I think what's exciting is with all the phase three readouts, six plus phase three readouts that we have over the back half of the year, if a few of those hit, we have the opportunity to further upgrade that mid-term guidance.
Absolutely. And that's certainly where a lot of eyes will be. Whether those readouts that you do have, whether they do prompt that guidance upgrade. And with that in mind, as you mentioned, I mean, you have several to look forward to. But when you think about the pipeline here that you have over the next 6 to 12 months, which readout do you think has the most potential to potentially change the trajectory for Novartis?
Yeah, I mean, there's a number of readouts, but I think the two big ones that people are particularly watching. One is Remibrutinib in multiple sclerosis, where we have two phase three studies where we have the opportunity to be the first oral drug to completely redefine the standard of care in multiple sclerosis. We have a long history going back to 2005 with Gilenya in multiple sclerosis, and so if this drug were to hit, it would obviously represent a significant upside for a medicine that has a number of other indications as well in immunology. And then the other one I think a lot of people are focused on is a drug called deldisiran, for a muscular condition called DM1. We acquired that in the Avidity acquisition. It's a $5 billion plus peak sales potential asset. And if we were to win, we'd be the first medicine ever to show efficacy in this disease. Those are probably the two big ones. And then there's a number of other ones that, as I mentioned, will be coming out as well over the coming months.
And even with this calendar that you have of upcoming readouts here, you take a look at what Wall Street is expecting. And basically they've factored in no growth for your company post 2030. And I wonder, you know, from the chair where you're sitting, where do you think the market is most underestimating you? What do your own internal modeling and calculations tell you about what that growth picture looks like?
Yeah, absolutely. So as I mentioned, we've got to 2030 that 5 to 6%. We've said mid-single digit thereafter. And I think the biggest question on people's minds will be these pipeline readouts. So that's one big thing. And we believe that we just take standard probabilities. If we win on half of these readouts, we'll be able to grow really consistently through the middle part of the next decade. But I think the other thing Wall Street is underestimating is the potential we already have in the current assets. Drugs like Leqvio, Scemblix, and Pluvicto. So these are all medicines that last with patent protection into the back half of the next decade or have significant life cycle management. So I think when taken together, we should be in a much stronger position. But I think you're right. The key question we need to keep demonstrating is that we can grow through the 2031, and next year that we have, and we feel confident that we can do that.
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Narasimhan, V. (2026, July 21). Novartis CEO on 2Q Profit Beat, Investing in Pipeline [Interview transcript]. Bloomberg Television. CEOInterviews.AI. https://ceointerviews.ai/interview/1112459/
MLA
Vasant Narasimhan. "Novartis CEO on 2Q Profit Beat, Investing in Pipeline." Bloomberg Television, 21 Jul. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1112459/.
BibTeX
@misc{narasimhan2026_1112459,
author = {Vasant Narasimhan},
title = {Novartis CEO on 2Q Profit Beat, Investing in Pipeline},
howpublished = {Interview transcript, Bloomberg Television. CEOInterviews.AI},
year = {2026},
month = {jul},
url = {https://ceointerviews.ai/interview/1112459/},
note = {Speaker-attributed transcript with timestamps}
}
