Novartis reported second-quarter core operating profit that exceeded market expectations, demonstrating resilience despite a significant sales decline in its flagship heart medication, Entresto.
The Swiss pharmaceutical giant managed to offset the revenue drag from the drug, which faces intensifying generic competition, through disciplined cost management that came in below analyst forecasts.
The results underscore the shifting dynamics within Novartis’s portfolio.
While Entresto remains a top seller, the erosion of its market share to generic alternatives is becoming a material headwind.
The company’s ability to control expenses allowed it to deliver a profit beat, but the underlying sales weakness in this key franchise signals ongoing margin pressure as patent protections wane.
This performance follows a period where Novartis has relied on strength in its oncology and multiple sclerosis portfolios to drive growth.