Novartis, revenues and profit down in the quarter. The share price slips on the stock market

Novartis ended the first quarter with lower-than-expected results, reporting a higher-than-estimated decline in profits and an unexpected drop in revenues, penalised by growing competition from generics on some of its flagship products. On the stock market, the share price fell more than 3.5 per cent in mid-morning trading, after having lost more than 5 per cent. The Swiss group posted a net profit of $3.156 billion in the first quarter, down 13% from a year ago, and an operating profit of $4.235 billion (-11%) on net revenues declining 5% at constant exchange rates to $13.11 billion (the first decline in two years).

"Novartis had a very good start to 2026 in terms of our priority brands and new launches, while the erosion of the generics market in the US weighed on first quarter results, as expected," said ceo Vas Narasimhan, adding that the group is "on track to achieve our full-year guidance and we look forward to the results of several studies in the second half of the year that could improve our medium- to long-term growth prospects."

The CEO's strategy, focused on transforming Novartis into a pure player in innovative prescription drugs, now faces a crucial transition. Indeed, the group is facing the most significant 'patent cliff' in its history, with the loss of exclusivity on blockbusters such as Entresto and other mature products.

Sales of Entresto, previously the main revenue driver, plummeted 42% last quarter, beyond analysts' expectations. On the other hand, demand for newer therapies, including the breast cancer drug Kisqali and Pluvicto for prostate cancer, is expected to support future development.

However, the Swiss pharmaceutical group confirmed its full-year guidance. "We expect a return to growth in the second half of the year," CFO Mukul Mehta said during the conference call with analysts.