Novartis faces generic drug competition during its transformation pains, expects profits to decline this year

Glonghui, February 4th｜Novartis (NVS.US) expects its profits to decline this year due to further impacts from generic drug competition against its core best-selling heart medication Entresto and others. The company stated on Wednesday that, at constant exchange rates, core operating income may see a low single-digit decrease. Sales are expected to grow by a low single-digit percentage. CEO Vas Narasimhan’s strategy of focusing on innovative medicines will be tested this year, as Entresto and other established best-sellers are under pressure from generic competitors. Currently, Novartis is launching a new drug for autoimmune skin diseases and will soon release key data on experimental therapies for heart disease and multiple sclerosis. Novartis has committed to building seven new facilities in the United States as part of its $23 billion investment plan to expand its manufacturing footprint in the country. A significant portion of this will focus on radioligand therapy (RLT)—a cancer treatment that uses targeted drugs to deliver radioactive isotopes directly to tumors.