Novartis Stock: Shares Surge on Exceptional Q4 Performance

Novartis experienced a remarkable upswing at the Swiss Stock Exchange SIX, with shares climbing 3.7% to reach 97.25 Swiss francs, touching a daily high of 97.30 francs. This impressive performance was driven by the pharmaceutical giant's outstanding fourth-quarter results, which substantially exceeded market expectations. The company reported a 15% increase in quarterly revenue, reaching $13.2 billion, while operating profit surged by 37% to $3.5 billion. Key medications, including Entresto, Kesimpta, Kisqali, Cosentyx, and Leqvio, demonstrated robust growth with double-digit sales increases, contributing significantly to the company's strong financial performance.

Future Growth Prospects

Looking ahead to 2025, Novartis maintains an optimistic outlook despite upcoming challenges. The company projects mid to high single-digit revenue growth and anticipates operating profit growth in the high single to low double-digit range. These targets notably exceed current market expectations by approximately four percent. In response to the strong performance, Novartis announced a dividend increase from 3.30 to 3.50 Swiss francs, reflecting confidence in its continued growth trajectory. However, the company acknowledges potential headwinds from generic competition for several key products, including Tasigna, Promacta, and Entresto, expected to enter the market mid-year.