Novartis Statistics By Facts, Market, Net Income, Full-Time Employees, R&D Projects, Dividend Paid, Capital Structure And Debt
Joseph D'Souza
Updated · Dec 20, 2024
WHAT WE HAVE ON THIS PAGE
- Introduction
- Editor’s Choice
- Novartis Key Facts
- Share Of Novartis Revenue By Market
- Novartis Net Income
- Novartis Full-Time Employees
- Sales Forecast Of Select Novartis R&D Projects Worldwide
- Dividend Paid By Novartis
- Novartis Raises 2024 Sales Forecast
- Novartis Capital Structure And Debt
- Novartis Strategic Focus And Performance Outlook
- Conclusion
Introduction
Novartis Statistics: Novartis, one of the world’s most advanced global pharmaceutical companies, seems to have performed well and grown in 2024. From the development of novel medicines to making certain investments in technology, Novartis has forever been increasing its market size.
This article deals with major figures from 2024 and tries to present the Novartis statistics performance more simply.
Editor’s Choice
- Novartis statistics reveal that in 2023, Novartis recorded a net profit close to $15 billion, the leading region being Said Region, where about $18 billion was generated.
- The company declared a great amount of revenue from its branded pharmaceuticals division, amounting to $31.8 billion.
- Novartis statistics show that amidst its several successes, Novartis reported a free flow amounting to $4.62 billion in Q2 of 2024, sales of which were particularly strong, particularly in oncology, with the help of agents like Kisqali and Entresto.
- In 2024, Novartis bought back 52.7 million shares at a cost of $5.7 billion, some of which are part of the $15 billion share–buyback program.
- The company’s net debt stood at $16.3 billion as of September 30, 2024, which was mainly due to share buybacks, acquisitions and payment of the annual dividend.
- In 2023, Novartis earned 73% of the total revenue from markets that can be defined as ‘developed’, including North America and Europe, with an additional 27% from the so-called emerging markets.
- The target that the company aims for is a core margin of 40% or greater by 2027, together with a mid-term sales growth forecast of 5% CAGR from 2022 to 2027.
- Novartis statistics indicate that over the past year, Novartis has reported ten positive Phase 3 readouts, and there are another 83 pipeline projects carried out with a focus on high unmet medical needs.
- Novartis is committed to innovation, availability of medicines, and people, coming first in medicine access and reaching over 250 million patients.
- The company also performs well on climate and water strategies as it has managed to get an AA degree from the CDP.
Novartis Key Facts
- According to Novartis statistics, Novartis was the 4th largest pharmaceutical company in terms of prescription sales around the world as of 2022.
- Nevertheless, in 2023, the company’s overall revenue collapsed to 45.5 billion U.S. dollars, representing a massive fall from the revenues generated the previous year. This fall was due in part to the divestiture of Sandoz, the company’s generic pharmaceutical entity.
- As of 2015, Novartis has also implemented such strategically major changes that its business operations have been reduced to two core areas of focus.
- At present, Novartis is operable in two business segments: Promoted Brands, previously referred to as Innovative Medicines, and Established Brands.
- In 2023, the largest share of the company’s total revenues came from the Promoted Brands segment, which was nearly 32 billion U.S. dollars.
- Geographically, most of Novartis’s revenue is derived from the US and European markets. In 2023, the company posted about 18 billion U.S. revenue from the United States and around 15 billion occupancy in Europe.
- Novartis statistics reveal that among the top sellers are the immunomodulatory Cosentyx and cardiovascular medication Entresto. In 2023, Novartis devoted almost 11.4 billion U.S. dollars — roughly a quarter of its overall revenue — to the research and development component. R&D is of paramount importance to chief players in the pharmaceutical industry for many reasons.
- First, patent protection for medicines is finite, and therefore, the threat of revenue evaporation is tangible, particularly for older medicines that generate the bulk of sales. There is an unbroken need to develop and commercialize new drugs, which provides some years of market monopoly.
- Piqray, a PI3K alpha inhibitor currently in the Novartis R&D pipeline, has the capacity for cancer treatment and is one of the drugs that is expected to do well in the coming years.
(Reference: statista.com)
- Novartis statistics show that in 2023, the revenue of Novartis AG, a prominent Swiss pharmaceutical firm, was split into two broad geographical markets: established and developing markets.
- The company operates in strong, stable regions, which are considered established markets, such as North America and Europe, where the company holds 73% of Novartis’s total revenue.
- This indicated that this company earned quite a large percentage of its income from these old continents.
- Nonetheless, emerging markets, which are defined as having a certain level of pharmaceutical needs and economic potential growth other than that of Europe and North American countries — some areas of Asia, Latin countries, and Africa, accounted for 27% of the revenue.
- Such analysis reveals that the company concentrates largely on existing markets but still has a respectable share and growth opportunities in nascent markets.
Novartis Net Income
(Reference: statista.com)
- In 2023, Novartis AG, one of the frontrunners in the global pharmaceutical industry, achieved a net income of almost 15 billion U.S. dollars.
- This amount is impressive, but it is less than the all-time high record of 24 billion U.S. dollars that was registered two years before, which was the previous peak high.
- Novartis derived about one-third of its total income, absolutely 15 billion dollars, from Europe in the financial year 2023.
- Novartis statistics indicate that the largest market for the company was the United States, as this country generated an approximate income of 18 billion U.S. dollars.
- Among the various groups of products offered, the branded pharmaceuticals or “Promoted Brands” segment, where Novartis earned 31.8 billion U.S. dollars of the total revenue of the company, was the largest. In June 2023, Novartis finished the demerger of Sandoz, its generics business, after doing the same with Alcon, its eye care division, in April 2019.
- A tremendous amount of SG&A (selling, general, and administrative) expenses was one of the major items in the annual budget of Novartis, which reached approximately 12.5 billion U.S. dollars in 2023.
- Moreover, around 11.4 billion U.S. dollars were used for research and development purposes in the same period, putting emphasis on the company’s focus on the pharmaceutical business.
Novartis Full-Time Employees
(Reference: statista.com)
- According to Novartis statistics, Novartis is a global healthcare company that recorded its highest employee count in 2018 at slightly above 125,000 full-time employees.
- However, by the year 2023, this figure had dropped sharply to approximately 76,000, largely as a result of spinning off the Sandoz, its generics unit.
- In Novartis’s organizational setup for the year 2023, only two units were functional, namely, ‘Promoted brands’ and ‘Established brands’. Aside from the drugs marketed by the firm, oncology became an important area for the firm, accounting for close to a quarter of the total revenue generated by the company.
- In mid-2023, Sandoz, the company’s universal generics and biosimilars unit, was also disposed of. Sometime back in April 2019, Alcon became a separate eyecare company from being under the wing of Novartis.
- Decreasing for the past years was the patient reach of Novartis, which coincided with a decrease in advertising expenses for the said company.
- On a larger scope of business, Novartis is one of the best pharmaceutical companies. It was recently positioned as number six in terms of market value alongside other organizations such as Johnson and Johnson and Roche.
- In terms of sales of prescription drugs in 2022, Novartis was in position four after Pfizer, AbbVie, and Johnson & Johnson.
- Moreover, when it came to research and development expenditure divided by sales, Novartis was estimated to be in the sixth position of the worldwide pharmaceutical companies.
Sales Forecast Of Select Novartis R&D Projects Worldwide
(Reference: statista.com)
- Significant impairment in time to market for certain drugs will likely not postpone their revenues significantly.
- Novartis statistics reveal that as of 2028, Novartis expects most of the revenues from its R&D investments to come from two drugs currently in development for the company.
- Piqray and Iptacopan. Piqray, a novel medication for the treatment of a particular spectrum of cancers, is estimated to bring in approximately 670 million U.S. dollars worth of sales globally.
- Likewise, Iptacopan, which is used in the treatment of some rare diseases, is expected to generate about 609 million U.S. dollars in sales across the globe.
- This presents a clear picture of the expected commercial potential of modern high-tech R&D projects by Novartis and their role in achieving revenue growth for the company.
Dividend Paid By Novartis
(Reference: statista.com)
- On the 18th of July, Novartis AG, the pharmaceutical giant, announced a solid set of financial results for Q2 2024.
- Novartis statistics indicate that the company generated a free cash flow of around $4.62 billion, or nearly 40% more than the figure recorded in the same period in 2023, thanks to high sales, primarily in the oncology business.
- The sales of Kisqali amounted to $717 million for the three-month period that ended June 30, 2024, which represented a 45.4% growth compared to the same quarter the previous year.
- Heart drug Entresto also performed exceptionally well, posting sales of $1.9 billion, a 28% increase from last year’s sales, surpassing my projections.
Novartis Raises 2024 Sales Forecast
- In light of a strong start for the year, Novartis is confident in raising its sales prediction within the year, even though a few of its leading cancer treatment drugs were below par as they were still in the introduction of some expansion.
- Recent Novartis statistics show that Novartis’ first-quarter revenue was recorded at $11.8 billion, representing a constant currency growth rate of 11% year on year and a 4% beat on the expectations of the analysts.
- Consequently, the firm altered its previous sales distribution and now expects a benefit in growth sales in high single to low double digits from the low mid-single digits sales target previously given.
- Despite this positive climate, three oncology products — Pluvicto, Kisqali, and Scemblix — were relatively underwhelming in the first quarter of 2024, with particularly Pluvicto’s sales of $310 million coming in 3% shy of expectations.
- The previous quarter had seen Pluvicto miss sales forecasts as well due to issues with product availability in 2023 and a smaller patient pool than anticipated in that quarter.
- Recently, however, the supply of the product stabilized, but the patient deadlines only began to improve, resulting in poor sales in early 2024.
- Novartis expects to see incremental patient volume for Pluvicto above the current indication as a post-chemotherapy option for patients with PSMA-positive mCRPC, which is expected to achieve peak sales of over $2 billion.
- Among these strategies is increasing oncologist referrals to these treatment centers and increasing the treatment site capacity.
- According to the CEO of the company, Vas Narasimhan, among the critical moments for Pluvicto will be the scheduled filing with the FDA for its use in the first-line setting in mCRPC patients, especially given the positive patient survival data reported in the phase 3 PSMAfore study.
- The submission for pre-chemo approval should occur in the second half of 2024, following earlier postponements on the grounds of insufficient clinical data.
Novartis Capital Structure And Debt
- Novartis statistics reveal that in the first quarter of 2024, Novartis bought back 52.7 million shares worth a total of $5.7 billion from the secondary listing on the SIX Swiss Exchange. This figure incorporates 45.49 million shares, which translates to $4.80 billion, bought back under the $15 billion program announced in July 2023, with $7.9 billion yet to be utilized.
- Furthermore, associates also repurchased 1.1 million shares or $0.1 billion worth of shares from associates.
- During this same period, a total of 9.1 million shares ($0.8 billion) were issued under approved associate share plans.
- Consequently, the change in outstanding shares was a decline of 44.7 million since thirty-one December twenty twenty-three.
- Treasury stock repurchases resulted in an equity shrink of $5.0 billion and a net cash outflow of $5.5 billion.
- Consequently, Net debt for Novartis went up to $16.3 billion as of September 30, 2024, compared to $10.2 billion at the close of the 2023 financial year.
- The rise was caused the most by the $12.6 billion free cash flow being consumed by the annual dividend of $7.6 billion, $5.5 billion for net outflows related to M&A activities and purchasing of intangibles, and $5.5 billion for buying back Treasury shares.
- At Novartis, as of Q3 2024, We have received a long-term credit rating of Aa3 and AA- from Moody’s and S&P Global Ratings, respectively.
Novartis Strategic Focus And Performance Outlook
- Novartis seeks to be seen as a company focused solely on innovative medicines, four therapeutic areas, two technologies, and three additional enablers.
- The corporation is pulling in considerable cash inflows and concentrating on accretive M&A and BD&L.
- There is also an existing dividend policy, which is solid and on the increase, as well as SBB programs for the company.
- The firm performed well in the year 2023, raised its full-year guidance three times, and revised upwards midterm sales growth rate to a CAGR of over 5% between 2022 and 2027.
- Beyond 2027, they expect growth in the mid-single digits. Novartis believes it will have a baseline core margin of around 40% and upwards by 2027.
- In pipeline terms, Novartis has reached ten positive phase 3 readouts and presentations in the last year. The firm is currently working on 83 pipeline projects in areas with high unmet medical needs.
- More than 15 key regulatory submissions are planned by Novartis between 2024 and 2027.
- The company has several material elements that are aimed at ensuring long-term value creation, such as innovation, access to medicines, and human capital.
- Novartis is rated number one in terms of medicine access initiatives, k ranked by Sustainalytics, has over 250 million patients within its purview, and is rated AA by CDO for its climate and water management.
Conclusion
Novartis statistics in 2024 showed a sound performance, where most resources were used in R&D, and many achievements were recorded in the area of ESG. Novartis managed to assert itself as one of the top pharmaceutical companies on the global stage with robust top-line growth, higher spending on new drug development, and a sustainability agenda.
The company’s sustained investments in research and development, another core area of the business, ensure its competitive edge even in the changing dynamics of the healthcare industry.
FAQ.
What were Novartis’ financial figures for the year 2023?
As such, Novartis was able to earn nearly $15 billion net income in 2023 thanks to the U.S. market alone, which managed to record almost $18 billion in revenue. The company also noted good results in revenue earned from its patented–branded pharmaceuticals segment, which was $31.8 billion. In terms of cash flow, Novartis reported that it had – free cash flow of $ 4.62 billion in Q2 2024, powerfully assisted by a strong oncology department performance, particularly Kisqali and Entresto drugs sales.
What are the business segments in which Novartis operates?
Novartis has two main business segments: ‘Promoted Brands’ (previously in Innovative Medicines) and ‘Established Brands’. Most of the company’s revenue, which is approximately $32 billion in 2023, comes from the Promoted Brands subdivision, which contains high revenue-earning drugs, including Cosentyx and Entresto.
How much revenue does Novartis generate from developed and emerging markets?
In 2023, the majority, approximately 73% of the revenues of Novartis were from matured markets like North America and Europe, while only 27% came from the growing developed regions.
How does Novartis project the growth of its revenue in the years to come?
Following adjustments on the previous sales growth predictions for 2024, Novartis anticipates a growth rate within the high single digits – low double digits. Additionally, the firm has set a 5% compound annual growth rate (CAGR) for the period between 2022 and 2027 and further project growth forecast in the range of mid-single digits after 2027.
How does Novartis think about innovation and market creation?
In recent years, Novartis has put more emphasis on innovation, particularly in the area of oncology, and has a number of drugs in development. Looking into 2024, the number of active projects is 83 in the pipeline, and considerable revenue should be generated from products such as Piqray and Iptacopan. In addition, Novartis is also investing in improving access to medicines and supporting strong dividends.
Joseph D'Souza
Joseph D'Souza founded Sci-Tech Today as a personal passion project to share statistics, expert analysis, product reviews, and experiences with tech gadgets. Over time, it evolved into a full-scale tech blog specializing in core science and technology. Founded in 2004 by Joseph D’Souza, Sci-Tech Today has become a leading voice in the realms of science and technology. This platform is dedicated to delivering in-depth, well-researched statistics, facts, charts, and graphs that industry experts rigorously verify. The aim is to illuminate the complexities of technological innovations and scientific discoveries through clear and comprehensive information.
