Novartis expects profit to decline in 2026 amid competition
It expects sales to grow in the low single digits
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[BASEL] Novartis forecast a profit decline for 2026, as some of the Swiss drugmaker’s top sellers – such as the heart medicine Entresto – got further hit by generic competition.
Core operating income will likely drop by a low single-digit percentage at constant currencies, it said on Wednesday (Feb 4). Sales are expected to grow in the low single digits.
CEO Vas Narasimhan’s strategy to focus solely on innovative medicines will be put to the test in 2026, as Entresto and other ageing bestsellers feel the pain from generic competitors.
Novartis is introducing a new pill for an autoimmune skin ailment, and will soon release crucial data on experimental treatments for heart disease and multiple sclerosis, among others.
To bolster growth, Narasimhan is also clinching deals.
In September 2025, Novartis agreed to buy US biotech company Tourmaline Bio to gain a promising treatment to reduce systemic inflammation – a major driver of cardiovascular disease.
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The following month, it struck its largest purchase in more than a decade by agreeing to pay as much as US$12 billion for Avidity Biosciences, which has developed several potential blockbusters.
Novartis recently resolved some uncertainties about the future of its business in the US, the world’s biggest pharmaceutical market.
Like its Swiss competitor Roche Holding, the company secured a deal with US President Donald Trump’s administration before Christmas.
The deal would shield it from new regulations, such as industry tariffs, in exchange for cutting prices.
Novartis has promised to build seven new facilities in the US, part of a US$23 billion push to expand its manufacturing footprint there.
A large share will focus on radioligand therapy – a form of cancer treatment that delivers radiation directly to tumours using targeted drugs.
Novartis’ shares have climbed by almost 24 per cent in the last six months, less than Roche’s. BLOOMBERG
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