KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Headline Performance: Another Earnings Beat
Novartis delivered another robust quarterly performance, driven by its core therapy areas and blockbuster drug portfolio, along with improved cash generation.
Key Financial Highlights:
| Metric | Q2 2025 | YoY Growth |
|---|---|---|
| Net Sales | $14.05B | +11% |
| Core Operating Income | $5.93B | +21% |
| EPS | $2.07 | +32% |
| Core Profit Margin | 42.2% | ↑ from Q1 |
| Free Cash Flow | $6.33B | +37% |
First-half free cash flow jumped 46% YoY, showing strong operational efficiency.
Pipeline Power: Flagship Drugs Lead the Charge
Novartis’ innovation-focused strategy continues to pay off across its four core therapeutic areas:
Therapeutic Area Breakdown:
| Area | Revenue | YoY Growth |
|---|---|---|
| Cardiovascular-Renal-Metabolism | $2.66B | +26% |
| Immunology | $2.55B | +9% |
| Neuroscience | $1.46B | +17% |
| Oncology | $4.29B | +20% |
Despite slower growth in Cosentyx and Zolgensma, the core pipeline remains robust.
Star Performers
Kisqali (Breast Cancer): +64% YoY, now holding 61% market share in early-stage CDK4/6 inhibitors
Entresto (Cardio): +22% YoY, 50% of sales from the U.S., with global expansion ahead
Kesimpta (Multiple Sclerosis): +33% YoY overall, +45% growth internationally
Leqvio (Cholesterol): +61% YoY, set to surpass $1B sales, with 74% international growth in Q2
Pluvicto & Lutathera (Radiopharma): +30% and +17%, consolidating global leadership in nuclear medicine
Focus on Kidney Disease & Gene Therapy
Novartis is actively expanding its pipeline in renal diseases:
Fabhatta: High patient retention (90%) in IgA nephropathy
Vanrafia: First FDA-approved non-hormonal oral IgA nephropathy drug
Regulus Therapeutics acquisition: Strengthens long-term kidney portfolio
These advancements position Novartis as a rising leader in nephrology.
Outlook & Strategy
Novartis raised its full-year core operating income forecast, citing:
Consistent blockbuster drug performance
Efficient cost structure
Strong cash generation
Short-Term Outlook:
Management flagged slower growth in H2 vs. H1
Anticipates near-term catalysts from gene therapy, radiopharma, and renal programs
Investor Takeaway
What’s Working
Strong Q2 execution
Pipeline-driven growth
Expanding global footprint in key therapies
What to Watch
Slower Cosentyx and Zolgensma sales
H2 growth deceleration
Bottom Line:
Novartis is proving its strength as an innovation-led pharma giant. With a diverse high-growth portfolio and solid balance sheet, the company remains well-positioned—even amid modest H2 expectations.
Comments
Post a Comment