Novartis confident as sales grow ahead of Tourmaline takeover

Novartis AG on Tuesday backed its full-year growth outlook, after reporting higher sales in the third quarter and a flurry of acquisition activity.

The Basel, Switzerland-based pharmaceutical company posted USD13.91 billion in net sales for the three months that ended September 30, up 8.5% from USD12.82 billion a year earlier.

Novartis reaffirmed annual guidance for high single-digit sales growth. In 2024, net sales grew 11% to USD50.32 billion from USD45.44 billion the previous year.

Net income advanced 23% in the third quarter to USD3.93 billion from USD3.19 billion, while earnings per share rose 29% to USD2.04 from USD1.58 on-year.

Core operating income rose 6.1% to USD5.46 billion from USD5.15 billion. For the full year, it is expected to grow in the low teens, compared with 19% growth to USD19.5 billion in 2024.

Chief Executive Vas Narasimhan noted: "We completed several deals in the quarter to further strengthen our pipeline in core therapeutic areas. We remain well on track to achieve our guidance for 2025 and over the mid-term."

Also on Tuesday, Novartis said that its tender offer for New York-based biotechnology company Tourmaline Bio Inc has closed, with 92.94% of Tourmaline shares validly tendered. The acquisition is expected to complete on Tuesday, according to Novartis.

The Swiss firm is buying Tourmaline, which develops treatments for the immune and inflammatory disease, through its Delaware-registered subsidiary Torino Merger Sub Inc. It has offered Tourmaline USD48.00 per share in cash, or USD1.4 billion in total.

Separately, Novartis is acquiring Avidity Biosciences Inc, a San Diego, California-based biopharmaceutical firm focused on RNA therapeutics, in an all-cash deal valuing Avidity at USD12 billion.