Novartis (NVS) Stock Drops 2% After Q1 Revenue Miss and Entresto Sales Plunge 42%
Novartis reported Q1 revenue of $13.11B, missing the $13.40B Wall Street estimate, with Entresto sales plummeting 42% to $1.31B due to generic competition. The company maintained its full-year outlook despite the revenue shortfall.
Novartis shares declined 2% in pre-market trading after the company reported a Q1 revenue miss. Revenue was $13.11B, below the $13.40B estimate, representing a 1% year-over-year decline. Entresto sales dropped 42% to $1.31B following the loss of U.S. patent protection and generic entry. Core earnings per share decreased to $1.99 from $2.28, and core operating profit contracted 12% to $4.9B. Novartis maintained its full-year outlook, citing a robust pipeline and product launches, and anticipates $4B in revenue erosion due to generic competition. CEO Vas Narasimhan expressed concerns about the U.S. 'most favored nation' pricing mechanism, warning it could restrict patient access to innovative therapies in Europe and Japan.
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