Novartis continued to navigate the patent cliff in the first quarter of 2026 as sales of leading drugs such as Entresto for heart failure faced stiff competition from generics. Net sales for the company as a whole fell by 5% at constant exchange rates and by 1% at actual rates, while operating income contracted by an even larger amount as the company increased spending on research and development. The allocation for R&D in the quarter was $2.7 billion compared with $2.4 billion a year earlier. For the year as a whole, the company expects net sales to grow by a low single-digit percentage.
In a prepared statement, Vas Narasimhan, the chief executive, said Novartis had delivered a strong start to the year while US generic erosion weighed on results in Q1 as expected.
As pressure from generics continues, Novartis is making new investments, one of which is in remibrutinib (Rhapsido), a Bruton’s tyrosine kinase inhibitor. Remibrutinib was approved by the US Food and Drug Administration in September 2025 for treating chronic spontaneous urticaria, a debilitating skin condition. It is currently being investigated in another form of urticaria, and as a treatment for food allergy and hidradenitis suppurativa, an inflammatory skin disorder. Separately in January, Novartis received a breakthrough therapy designation from the FDA for ianalumab, a new drug for Sjögren’s disease, an autoimmune disorder.
In February, the company completed the acquisition of Avidity Biosciences Inc of the US for $12 billion. Avidity will deliver three rare disease products to the company’s portfolio as well as technology for antibody oligonucleotide conjugates, a new therapy construct. Going forward, Novartis said it intends to expand its technology platforms to include gene and cell therapies, radioligand therapy, and RNA-based therapies in addition to small molecules and biologics.
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