Novartis raises 2025 forecast after strong Q1 momentum
Novartis has today released a more optimistic full-year earnings forecast, citing the strong growth of drugs such as Leqvio, Kisqali and Kesimpta during the first quarter.
The Swiss drugmaker said in a statement that it expects 2025 operating income, adjusted for special items, to grow by a "low double-digit" percentage.
It had previously projected "high single to low double-digit" growth this year, compared with a 22% increase in 2024.
First-quarter net income, adjusted for special items, rose 22% to $4.48 billion, surpassing an analyst consensus of about $4.2 billion.
The company's breast cancer drug Kisqali saw quarterly revenues jump 52% to $956m, while sales of cholesterol-lowering drug Leqvio surged 70% to $257m, gaining momentum after a slow launch. Both beat market expectations.
"We expect the strong quarter along with the 2025 guidance upgrade ... to be well-received," JP Morgan analysts said in a research note, adding that the analyst consensus on adjusted earnings for 2025 was set to rise by 1%.
Novartis said this month it plans to spend $23 billion to build and expand 10 facilities in the US, as it grapples with threats of drug import duties by the Trump administration.
Chief executive Vas Narasimhan said that the company had historically expanded capacity in Europe and other regions to serve the US, which is its biggest market.
"We now want to ensure that 100% of the demand of our key products in the US is produced in the US," Narasimhan said in a media call, declining to provide details on volumes.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Journal
an hour ago
- The Journal
Former senior Trump official says special relationship with Ireland won't stop president's trade war
Mairead Maguire IRELAND WILL LIKELY become collateral damage in Donald Trump's efforts to put America first – but it's nothing personal. That's according to Mick Mulvaney, a former Republican congressman who was Trump's acting chief of staff in his first term and who has a unique insight into how the president operates. He spoke to The Journal at the Global Economic Summit in Killarney, where tariffs and trade were headline issues. Trump, Mulvaney says, wants to make deals where everyone wins. But if that's not possible, he'll make sure America wins, even at the cost of special relationships. 'His first interest is to take care of Americans. It's not to say, 'You know what, I hate Ireland. Let's just stick it to them'. That's not how this works. 'Why are American businesses doing business in Ireland when they could be doing it in the United States? That's the perspective.' Mulvaney said, however, that there is a real connection with Ireland. 'It's familial, it's cultural. 'The Irish are so naturally good at diplomacy. It is one of your competitive advantages in the world marketplace. I don't understand why it's been struggling the last two years.' Mulvaney says 'dramatic missteps' made by the Irish government – particularly in relation to Palestine – have caused a 'blip' in the strong relationship. He said he understands the parallels between Ireland and Palestine, and the government's decision to join Spain and Norway in recognising it as a state, but he claims Washington was blindsided by it. 'What I don't understand is why nobody called us beforehand. Friends don't do that to each other. 'I found out about it in the press. I understand that my government found out about it in the press.' Then-Tánaiste Micheál Martin announced his intention for Ireland to recognise the state of Palestine weeks in advance, after months of discussions. The government is set to green light the Occupied Territories Bill – another move expected to ruffle Republican feathers. Officials at the Department of Foreign Affairs and Trade have been revising the bill, making substantial amendments to the original text in order to bring it in line with the constitution and reduce the risk of a clash with EU law. As a result, the bill is expected to only cover goods and not services, such as products from online tech companies. Advertisement Even in its revised, stripped-back version, Mulvaney says the bill is unlikely to be well received in Washington. 'If you're pro-Palestinian, to half of my country you have to explain why that's not antisemitic.' On the trade war with Europe, Mulvaney's reading of the situation is that Republicans don't see the bloc as a viable ally in the long run. This, he says, is partly because the priorities for many younger European voters, such as climate change, conflict with Washington's priorities. Trump this week paused his threatened 50% tariffs on the European Union until 9 July, postponing them from the original 1 June deadline he had initially given. 'A weird time' Mulvaney quit his role in the White House after the Capitol riots of 6 January 2021. He was a Republican congressman in the House of Representatives before becoming director of the Office of Management and Budget and then acting chief of staff for Trump. He also sought out the role of Special Envoy to Northern Ireland, as he's 'been coming here for 20 years'. His ancestors are from Mayo. Mulvaney now regularly appears in American and international media as a commentator on politics and economics. He says it's a 'weird time' for his country, as significant figures in both the Republican and Democratic parties are aging. Joe Biden, who dropped out of the presidential race last year, recently announced a cancer diagnosis. As for Trump, the constitution prevents him for running for a third term. Mulvaney believes the 2028 presidential race will be of particular importance. 'It will represent generational change in both parties, and that will be fascinating to see.' Both parties, he says, have a good lineup of potential candidates. His ones to watch? Within the Democratic Party: Senator Cory Booker, Michigan governor Gretchen Whitmer, and congresswoman Alexandria Ocasio-Cortez. Among Republicans, he tips current vice president JD Vance to run. Florida governor Ron DeSantis and Secretary of State Marco Rubio are also ones to watch. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
RTÉ News
4 hours ago
- RTÉ News
China 'firmly rejects' US claim that it violated tariff deal
China has said it "firmly rejects" US claims that it had violated a sweeping tariffs deal, as tensions between the two economic superpowers showed signs of ratcheting back up. Last month, China and the US agreed to slash staggeringly high tariffs on each other for 90 days after talks between top officials in Geneva. However, top US officials last week accused China of violating the deal, with Commerce Secretary Howard Lutnick saying Beijing was "slow-rolling" the agreement in comments to "Fox News". China hit back, saying the US "has made bogus charges and unreasonably accused China of violating the consensus, which is seriously contrary to the facts". "China firmly rejects these unreasonable accusations," the Chinese commerce ministry said in a statement. US President Donald Trump said last week that China had "totally violated" the deal, without providing details. China's commerce ministry said it "has been firm in safeguarding its rights and interests, and sincere in implementing the consensus". It fired back that the US "has successively introduced a number of discriminatory restrictive measures against China" since the Geneva talks. The ministry cited export controls on artificial intelligence chips, curbs on the sale of chip design software and the revocation of Chinese student visas in the United States. "We urge the US to meet China halfway, immediately correct its wrongful actions, and jointly uphold the consensus from the Geneva trade talks," the ministry said. If not, "China will continue to resolutely take strong measures to uphold its legitimate rights and interests," it added. Trump-Xi talks? US officials have said they are frustrated by what they see as Chinese foot-dragging on approving export licences for rare earths and other elements needed to make cars and chips. However, Washington's Treasury Secretary Scott Bessent looked to ease the pressure, saying the two sides could arrange a call between their respective heads of state to resolve their differences. "I'm confident... this will be ironed out" in a call between Trump and Chinese President Xi Jinping, Mr Bessent said on CBS's "Face the Nation". He added, however, that China was "withholding some of the products that they agreed to release", including rare earths. On when a Trump-Xi call could take place, Mr Bessent said: "I believe we will see something very soon." China has been less forthcoming, and the commerce ministry's statement did not mention any planned conversations between the two leaders. The Geneva deal was "an important consensus reached by the two sides on the principle of mutual respect and equality, and its results were hard-won", the ministry said. It warned the US against "going its own way and continuing to harm China's interests".
Irish Examiner
8 hours ago
- Irish Examiner
Jim Power: Ireland must diversify as 'Taco' brings too much uncertainty
We always suspected that the second Trump presidency would be volatile, uncertain, and chaotic, but few would have guessed just how chaotic it would turn out to be, and unfortunately there is still a long way to go. For business, for consumers, and for virtually every government around the globe, the result is huge uncertainty, and this does not bode well for future economic activity or political stability. At the weekend, we had the spectacle of Trump announcing a 50% tariff on all imports from the EU effective from June 1, but then he rowed back a couple of days later following a fruitful telephone conversation with Ursula von der Leyen. There have been close to 60 specific tariff announcements from Trump, and the saga runs on. Strange times indeed. Last Wednesday, the US Court of International Trade ruled that that Trump had wrongly used the International Emergency Economic Powers Act to slap tariffs on almost all of the US trading partners. Then a federal appeals court temporarily reinstated many of the tariffs. This short-term relief will now allow Trump's appeal process to proceed. Meanwhile, the EU and China and many others will engage in negotiations with the administration in an effort to avoid a cliff edge situation in early July. How can any sort of longer-term or indeed short-term planning proceed in an environment of such uncertainty? Personally, if I were a business contemplating an investment project or hiring more labour, I would put everything on hold, because one has no idea what type of conditions will prevail in weeks or months down the road. One benign interpretation is that the by-now well-flogged term, 'Taco' president – an acronym standing for Trump Always Chickens Out - will win the day. This term coined by the Financial Times columnist Robert Armstrong is a notion that the markets and others are latching on to. Taco is certainly influencing market behaviour. Despite the turmoil and uncertainty, equity markets ended May in decent positive territory. The S&P 500 is back at levels last seen in February, before the Rose Garden 'Independence Day' fiasco on April 2. If the markets believed that Trump will ultimately deliver on everything he promised or threatened, markets should be deep in the red at this stage. If delivered, the Rose Garden reciprocal tariffs would take US tariffs back to levels last seen when the Smoot-Hawley Tariff Act of 1930 was implemented. This tariff act was designed to protect American farmers and businesses from foreign competition, but it ultimately prolonged and deepened the great depression which wiped out the 1930s. If the Rose Garden reciprocal tariffs were to materialise, the economic impact would be similar, but this possibility is not being considered by the markets. Indeed, the US consumer confidence reading from the Conference Board over the past week showed the strongest monthly rebound in four years, from a five-year low. Consumers seem to believe that Trump will chicken out. For all of our sakes, one hopes this proves prescient. Apart from the threatened tariff, many of Trump's other policies should give deep cause for concern. The 'big beautiful tax bill' that Trump is pushing through Congress would add significantly to US debt levels and widen inequality. The wild west he is trying to create in the crypto world, the world of AI, and his loose regulatory approach to the banking system should all give cause for deep concern. His two sons at a crypto conference in Las Vegas expressed a heartfelt desire to use crypto to wipe out the US banking system. On and on it goes, and where it ends, nobody knows. Here in Ireland the threats from all of these developments are very real, but unfortunately much is outside of our control. I have spoken many times of the necessity to diversify our external trade relations, and it is good to see Government pushing hard to ratify the Canadian trade agreement, CETA; our FDI exposures; and build up the indigenous SME-dominated economy. To me, one of the most significant and related events over the past week was the stark warning from Uisce Éireann about the dire need for heavy investment to facilitate the delivery of Government housing targets. Hopefully, Government will now step up to the plate and do what is necessary to begin the process of addressing the housing crisis in a meaningful way.
