Novartis Projects Slow 2026 Sales Amid Patent Expiries

Novartis Announces Conservative 2026 Growth Forecast

Novartis AG has forecast low single-digit sales growth for 2026, with core operating income expected to decline by a similar margin. The projection is attributed to the company facing its largest patent expiry amid growing competition from generic pharmaceuticals.

2025 Financial Highlights

The announcement from the Basel-based drugmaker follows a report of its full-year 2025 financial results. Net sales reached $54.53 billion, an 8% increase in constant currencies from the $50.32 billion reported in the previous year. This recent growth contrasts with the more cautious outlook for 2026.

Market Impact of Patent Expiration

The primary driver behind the subdued forecast is the impending loss of patent protection for key revenue-generating drugs. This patent cliff is anticipated to significantly impact sales as lower-priced generic versions enter the market, challenging Novartis's market share and profitability.

Summary

Novartis is preparing for a challenging financial period as it navigates the effects of patent expirations. The company's ability to offset these losses through its existing drug pipeline and future strategic moves will be critical for its long-term performance and investor confidence.

FAQ

Q: What is Novartis's sales growth projection for 2026?
A: Novartis projects low single-digit sales growth for 2026.

Q: What is the main reason for this slow growth forecast?
A: The forecast is mainly due to the expiration of major patents, which opens the door to increased generic competition.

Q: What were Novartis's net sales in 2025?
A: Novartis reported full-year 2025 net sales of $54.53 billion, an 8% increase in constant currencies year-over-year.

Source: Investing.com