Net sales at Novartis took a hit in the fourth quarter of 2025 as generic versions of some of its iconic drugs faced competition from new producers. Group sales for the period were $13.3 billion, down by 1% at constant exchange rates and up by just 1% as measured in dollars. For the year as a whole, the company reported sales of $54.5 billion, up by 8% in constant and actual exchange rates.
Vas Narasimhan, the chief executive, expressed confidence in future growth in a statement issued on 4 February, while also acknowledging the magnitude of the challenge. “In 2026, we expect to grow through the largest patent expiry in Novartis’ history, underscoring the strength of our business, and remain well on track to deliver our mid-term guidance,” he said.
Novartis is guiding for a compound annual growth rate for sales of 5 to 6% in the period 2025 to 2030. This year it expects sales to grow by a low single-digit rate and for core operating income to decline by a low single-digit figure. Core operating profit is a non-IFRS measure that excludes the impairment of intangible assets.
In the fourth quarter, Novartis experienced double-digit sales declines for Entresdo for heart failure; Promacta for thrombocytopenia; Tasigna for chronic myelogenous leukaemia; and Lucentis for macular degeneration and other eye diseases. These steep declines were narrowly offset by sales gains from nine major products of which the top four were Kisqali for breast cancer; Kesimpta for multiple sclerosis; Pluvicto for prostate cancer; and Cosentyx for plaque psoriasis and other autoimmune and inflammatory diseases.
Novartis spent $11.2 billion on research and development in 2025 and $13.2 billion on selling and administration, respectively, 20.5% and 24% of sales. Key R&D updates from the fourth quarter include the US Food and Drug Administration’s approval of Itvisma, a gene replacement therapy for children and adults with spinal muscular atrophy, and the approval by the European Commission of an expanded indication for Scemblix, a treatment for adults with Philadelphia chromosome-positive chronic myeloid leukaemia.
Novartis’ platform technology priorities include small molecules and biologics as well as radioligands, cell and gene therapies, and RNA-based therapies. In November 2025 the company entered into an agreement to acquire Avidity Biosciences Inc of the US for $12 billion. Avidity will deliver three rare disease products to the Novartis portfolio as well as technology for antibody oligonucleotide conjugates, a new therapy construct.
Copyright 2026 Evernow Publishing Ltd