The latest Market Talks covering the Health Care sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0745 GMT - Sandoz Group's third-quarter sales fell short of expectations after supply constraints in Europe and a challenging German market hurt the Swiss maker of generic medicines, Vontobel's Stefan Schneider says in a note. Stronger demand in the quarter led to supply constraints for biosimilar drugs in Europe and international markets, while Sandoz faced more challenging market conditions in Germany than it anticipated, the analyst says. On top of this, Sandoz continues to be hit by adverse dynamics in its anti-infectives business, but this was expected and should dissipate, he adds. These factors prompted Sandoz to narrow its full-year sales guidance to growth of 5% to 6% at constant currency, and might raise questions about whether they are temporary or have been resolved, Vontobel says. (adria.calatayud@wsj.com)
1441 GMT - Novartis's third-quarter revenue was roughly in line with consensus estimates, with some key drugs beating expectations and others falling short, Bernstein analysts say in a research note. A one-off reimbursement benefit helped immunology drug Cosentyx beat consensus forecasts, while gene therapy Zolgensma also exceeded expectations on launch momentum for a new formulation, the analysts say. Two oncology drugs stood out among the key top-line underperformers, Pluvicto for prostate cancer and Kisqali for breast cancer, they add. Pluvicto sales growth should pick up in 2027, and Kisqali retains U.S. leadership in early and late-stage phases of the disease, according to Bernstein. Shares are up 1.1% at 128.86 Swiss francs. (adria.calatayud@wsj.com)
1339 GMT - Novartis investors' attention will shift to an update on its midterm outlook next month, when the Swiss drugmaker could raise its peak-sales estimates for key drugs, Bank of America analysts say. The company reported third-quarter results, with core earnings per share beating consensus expectations, mainly thanks to lower-than-expected costs, the analysts write. Novartis also said it expects core operating profit to grow in 2026 in the low single-digit range. Next up is the company's capital markets day in November, at which Novartis will likely roll forward its existing guidance of 5%-6% sales growth at constant currency for the 2025-30 period to 2026-31, the analysts say. It could also use the event to increase peak-sales guidance for key drugs like Scemblix, Leqvio and Pluvicto, they add. Shares rise 0.3%. (adria.calatayud@wsj.com)
1325 GMT - Novartis's guidance increase should be well received in the current market backdrop, Jefferies analysts say in a research note. The Swiss pharmaceutical company reported quarterly sales that were just ahead of forecasts, but this dropped through with notably lower operating expenses, with core operating profit and core earnings per share both ahead of estimates, the analysts say. Novartis's new guidance points to full-year core operating profit of between $22.1 billion and $22.8 billion, according to Jefferies. This compares with the consensus forecast of a decline to $21.8 billion and Jefferies's estimate of $21.9 billion, the analysts say. Shares rise 0.25%. (adria.calatayud@wsj.com)
1313 GMT - Novartis had a very solid third-quarter performance, but its recently launched products underperformed, Vontobel's Stefan Schneider says in a research note. The Swiss drugmaker reported quarterly sales slightly above consensus expectations, but its core operating profit clearly beat forecasts due to productivity improvements, according to Schneider. Profitability was surprisingly good considering that three large drugs are facing generic competition, he adds. "Despite the good results, we note that the top-line beat is predominantly due to older products outperforming, whereas newer drugs struggled to meet expectations," Vontobel says. Shares rise 0.4%.
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