Latest news with #VasNarasimhan
Time Magazine
08-05-2025
- Health
- Time Magazine
Vas Narasimhan
Early in Vas Narasimhan's career as a physician scientist, he worked on programs for treating HIV/AIDS in Africa and saw the impact of medicine in places that need it most. The experience inspired Narasimhan to lead development of drugs and vaccines for more than two decades. But treatments didn't always reach the neediest, and he 'dreamed of having a much bigger impact on the world,' he says. In 2018, he became CEO of Novartis and seized the opportunity to direct the company's vast resources for transformative change. In the past year alone, the U.S. Food and Drug Administration (FDA) has approved new uses of Novartis' drugs for three devastating diseases: breast cancer, chronic myeloid leukemia, and prostate cancer. 'These approvals will change the paradigm for treating cancer patients,' Narasimhan says. The medicine now approved for use against prostate cancer, called Pluvicto, is an example of Novartis' investment in radioligand therapy—where a small radioactive molecule, delivered intravenously, destroys cancer cells while sparing healthy tissue. Narasimhan thinks it could revolutionize medicine. He is similarly excited about AI, which is accelerating Novartis' clinical trials, and the company's cell and gene therapies, including a new form of its treatment for spinal muscular atrophy designed to help a broader range of children. The CEO hasn't forgotten his scientist roots, still scrutinizing the data from clinical trials. He's also staying true to his ultimate goal: 'advancing these novel technologies at scale.' With his leadership, Novartis last year became the No. 1 pharmaceutical company for improving access to medicine in low-to-middle-income countries, according to the Access to Medicine Foundation. More than 1 billion people in over 70 countries have received Novartis' treatments for malaria largely at no profit to the company, Narasimhan says. Bringing his early-career visions of changemaking to fruition, he says, is 'incredibly rewarding.'
Yahoo
02-05-2025
- Business
- Yahoo
Pharma downplays tariff threat, even as risks remain unclear
This story was originally published on BioPharma Dive. To receive daily news and insights, subscribe to our free daily BioPharma Dive newsletter. The threat of tariffs on pharmaceuticals imported to the U.S. hasn't yet pushed drugmakers off course, with many of the largest companies indicating they expect to be able to absorb any impact in the short term. Speaking on earnings calls in recent weeks, pharma executives have, for the most part, told investors their supply chains are flexible enough to mitigate the effects of new levies — for this year, at least. With a few exceptions, the large drugmakers that have reported financials for the first quarter are maintaining their sales and profit guidance for 2025. 'We've taken, I think, appropriate actions with inventory levels and in terms of managing our supply chain to enable us to feel comfortable we can manage it this year and in the medium term,' said Novartis CEO Vas Narasimhan in the company's April 29 earnings call. His comments were largely consistent with those of his counterparts at other drugmakers. 'I'm cautiously optimistic,' said Pfizer CEO Albert Bourla on a separate April 29 call. 'I hope that we will weather it successfully.' Pharma products were exempted from the broad tariffs President Donald Trump announced April 2. But the U.S. Department of Commerce has opened a trade investigation that analysts expect will lead to sector-specific tariffs on national security grounds. Trump has suggested the new tax could be high, floating rates between 50% and 200%. Typically, these so-called Section 232 probes take about nine months, but it's thought the Trump administration will move more quickly. Executives acknowledged the uncertainty they still face, but attempted to assure analysts during earnings calls that they've prepared for a range of scenarios. Many have already taken steps to insulate themselves, such as by moving inventory to the U.S. or by increasing U.S.-based production of key medicines. 'Companies are aggressively importing as much product as possible ahead of potential tariffs,' wrote David Risinger, an analyst at Leerink Partners, in an April 30 note to clients. If companies have one year or more of supply already in the U.S., he added, they should be able to avoid tariffs impacting their cost of goods and profits in the near term. A few, namely Johnson & Johnson, Merck & Co. and Pfizer, have also detailed the indirect costs they expect to absorb from the general tariffs already imposed by the U.S., which will raise the expense of procuring goods like steel, laboratory supplies and chemicals. J&J expects a $400 million hit, due mainly to its medical device business, while Merck and Pfizer anticipate, respectively, expenses of $200 million and $150 million. Those general tariffs — a baseline 10% duty and much higher, 'reciprocal' rates that are temporarily paused for most countries except China — have whipsawed markets and roiled the planning of companies in other sectors, like aviation, automotive and consumer goods. Firms like Walmart, Delta and GM have withdrawn their financial forecasts for the year in response. Over the longer term, drugmakers aim to reposition their manufacturing — a yearslong process many have already begun. 'We actually had started to change and rebalance our supply chain strategy, beginning with the Tax Cut and Jobs Act, where we started moving more towards being able to have U.S. for U.S., Europe for Europe, and Asia for Asia,' Merck CEO Rob Davis said on an April 24 call, referring to the 2017 U.S. tax law that lowered corporate rates. The tariff threat appears to have accelerated efforts like Merck's. Since February, big pharma firms have announced more than $170 billion in planned investment in U.S.-based manufacturing, including plans for $55 billion in spending from J&J and $50 billion from Roche. 'Our goal in the coming years is to have 100% of our key U.S. products fully produced end-to-end in the U.S. and we're on track to do that,' said Narasimhan, of Novartis, which recently committed to $23 billion in new domestic spending. However, many large firms still have a significant manufacturing presence in countries like Ireland, Switzerland and the Netherlands, the latter of which is also a common home for companies' valuable intellectual property. Tariffs on those countries could cause more significant problems for the industry. Executives are advocating for the Trump administration to lean on tax policy, rather than tariffs, to achieve its goal of reshoring drug supply chains. 'We support the U.S. government's goals to increase domestic investment,' Lilly CEO David Ricks said Thursday. 'However, we don't believe tariffs are the right mechanism. Enhanced tax incentives and/or the extension of the Tax Cut and Jobs Act are better tools to achieve these goals.' J&J CEO Joaquin Duato made a similar point on his company's first quarter earnings call held April 15. Recommended Reading Pfizer's Bourla 'cautiously optimistic' on looming US pharma tariffs Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Novartis posts better-than-expected sales driven by medicine demand
Swiss drug firm Novartis reported on Tuesday that it had generated a better-than-expected profit in the first three months of the year. Net sales were up 15% on a constant currency basis to $13.2 billion, compared to the $13.12bn estimated by analysts. Core operating income came to $5.6bn, up 23% in the last quarter, while core net income increased 22% to $4.5bn. Related European markets rise as Trump prepares tariff reduction on auto parts On the strong results, the firm increased its outlook for the year, predicting that sales will rise by high-single digits and core operating income will grow by low double-digits. In January, the firm gave a wider range. Sales in the last quarter were driven by medicines related to conditions including arthritis, breast cancer, multiple sclerosis, and heart-failure. Related HSBC plans multibillion share buyback as profits slump in first quarter Over the quarter, the company's breast cancer drug Kisqali saw revenues rise by 56% to $956 million. Heart-failure drug Entresto saw a 22% jump to around $2.3bn, while arthritis medicine Cosentyx saw revenues rise 18% to around $1.5bn. Vas Narasimhan, CEO of Novartis, also highlighted new approvals in the earnings report. "We also achieved significant innovation milestones in the quarter, with new approvals for Pluvicto in the pre-taxane setting, Vanrafia for IgA nephropathy, and Fabhalta for C3G," Narasimhan said. He added: "We remain focused on advancing our leading pipeline and confident in achieving our growth outlook.' Novartis is closely watching decisions from the White House to determine how pharmaceutical products coming into the US will be taxed. The Trump administration opened a 21-day national security probe into the industry earlier this month. Pharmaceuticals are currently exempt from a so-called "reciprocal" tariff rate, although Trump has suggested imposing a 25% levy on medicines. Novartis announced a few weeks ago that it would invest $23bn in the US over the next five years to build and expand 10 facilities. The firm aims to domestically produce all medicines for US patients.
RTÉ News
29-04-2025
- Business
- RTÉ News
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.
New Indian Express
24-04-2025
- Business
- New Indian Express
Novartis' $23 billion investment signals major manufacturing shift amid Trump's ‘MAGA' agenda
In what could be seen as a bellwether for the pharmaceutical industry's sweeping shift toward localised manufacturing—spurred by anticipated regulatory changes under the Trump administration's "Making America Great Again" agenda—Swiss pharmaceutical giant Novartis AG has positioned itself as a first mover, announcing a landmark investment in US-based production. The multinational drug maker has unveiled plans to invest $23 billion over the next five years to significantly expand its manufacturing footprint across the United States. As part of this bold initiative, Novartis will construct and expand ten facilities, including seven entirely new sites. The project is expected to generate nearly 1,000 new jobs directly within Novartis and create approximately 4,000 additional jobs across the broader US economy. In a recent statement on the company's website, Novartis CEO Vas Narasimhan emphasised the strategic importance of this move: 'As a Swiss-based company with a strong presence in the US, these investments will allow us to fully integrate our supply chain and key technology platforms domestically, reinforcing our confidence in our U.S. growth trajectory.' He added, 'These investments also reflect the pro-innovation policy and regulatory environment in the U.S., which empowers us to discover and deliver the next wave of medical breakthroughs for patients.' Industry experts interpret this initiative as part of a broader strategic alignment with looming regulatory reforms, not just in pharmaceuticals but across key industries. The US remains the world's largest pharmaceutical market, currently valued at approximately $650 billion and projected to reach nearly $884 billion by 2030. For global pharma players—including major generics manufacturers from India, often dubbed the "pharmacy of the world"—the US represents a critical source of revenue and profitability. As such, any potential regulatory mandates favoring domestic manufacturing or increasing import tariffs could pose a significant challenge to companies lacking local production capacity, threatening to erode margins and market share. For Novartis, the decision to expand its US footprint is both a defensive and strategic move. The company's US expansion includes four new manufacturing facilities in as-yet-undisclosed states: three focused on biologics (including drug substances, drug products, device assembly, and packaging) and one dedicated to chemical drug substances and oral solid dosage forms. In addition, Novartis will build two new radioligand therapy (RLT) production sites in Florida and Texas and enhance three existing RLT facilities in Indianapolis, Indiana; Millburn, New Jersey; and Carlsbad, California. Further reinforcing its innovation pipeline, Novartis will also launch a $1.1 billion biomedical research and innovation hub in San Diego, California, slated to open between 2028 and 2029. The complex will provide cutting-edge scientific infrastructure and drug discovery capabilities to support the company's West Coast research efforts. Once fully operational, Novartis will have domestic manufacturing capabilities across all its core technology platforms, including small molecules, biologics, and, for the first time, siRNA-based therapeutics. This expanded production network will allow the company to manufacture 100% of its key medicines within the US, significantly boosting its current output levels. As
