Investing.com -- Novartis (SIX:NOVN) on Friday reported its fourth-quarter and full-year 2024 financial results. Fourth-quarter net sales reached $13.2 billion, a 16% increase in constant currency, with core operating income rising by 29%.
Full-year net sales were $50.3 billion, up 12% in constant currency, and core operating income increased by 22%.
The Swiss pharmaceutical company cited strong demand for key drugs across its therapeutic areas as a contributing factor.
Several key drugs drove the quarter's growth. Entresto, a heart failure treatment, saw sales increase by 34%, continuing its growth in key markets.
Immunology drug Cosentyx expanded by 24%, while the multiple sclerosis therapy Kesimpta and breast cancer drug Kisqali both posted 49% and 52% growth, respectively.
Meanwhile, Leqvio, a cholesterol-lowering treatment, surged 83%, and radioligand therapy Pluvicto grew 28%, showing continued uptake in cancer care.
“With the momentum we are seeing in the business, we expect to continue our strong sales growth with margin expansion in 2025 and we remain on track to deliver on our mid-term guidance,” said Vas Narasimhan, chief executive at Novartis in a statement.
Novartis's fourth-quarter operating income increased 39% to $3.5 billion, primarily due to higher sales.
Net income rose 6% to $2.8 billion, reflecting increased taxes and prior-year one-time benefits.
Free cash flow increased 70% year-over-year to $3.6 billion. This supported capital allocation, including share buybacks and a proposed 6.1% dividend increase to CHF 3.50 per share..
For 2025, Novartis projects mid- to high-single-digit net sales growth and high-single to low-double-digit core operating income growth. The company plans to continue developing its drug pipeline, with 15 trial readouts expected to support submissions in the coming years.