Pharma Giants Novo Nordisk, GSK, and Novartis Report Robust 2023 Earnings, Eye Growth in 2024

January 31, 2024

Year-end earnings for 2023 have been reported by major pharma companies Novo Nordisk, GSK, and Novartis, each presenting a distinct financial outlook and future projections for 2024.

Novo Nordisk experienced substantial growth, mainly driven by GLP-1 drugs Wegovy and Ozempic. Sales increased by 36%, with diabetes and obesity care products rising 42% at constant exchange rates (CER). The company’s operating profit grew 44% to 102.57 billion Danish kroner (DKK), and net profit reached 83.68 billion DKK. Despite competition from Eli Lilly and Roche, Novo Nordisk anticipates further growth in 2024, expecting sales growth between 18% and 26% and operating profit growth between 21% and 29% at CER.

GSK also had a strong year, with its RSV vaccine Arexvy contributing significantly to a 5% increase in total sales at CER, totaling £30.3 billion. GSK’s operating profit rose 10% at CER to £6.7 billion. The company expects a 5% to 7% sales growth in 2024 and an upgraded growth outlook for 2026 and 2031. GSK’s recent acquisitions include a $1.7 billion deal with Hansoh Pharma and a $1 billion agreement for Aiolos Bio.

Novartis reported an earnings miss for Q4, although it saw a solid performance in 2023. Its quarterly core EPS was $1.53, with net sales of $11.4 billion. The company’s annual net sales grew 8%, and core operating income increased by 11%. Novartis expects mid-single-digit net sales growth and high-single-digit core operating income growth in 2024. Recent deals include collaborating with Voyager Therapeutics and acquiring Calypso Biotech.

Despite various challenges, each company displayed resilience and growth in critical areas, with optimistic projections for the coming year.

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[Source: MM+M, January 31st, 2024]

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