Novartis’ Q4 sales fell short of street expectations, although profitability improvements were noteworthy. The strong performances in Oncology and Cardiovascular were partly offset by weaker dynamics in Immunology and Neuroscience. Generics continued to face pricing pressure. Overall, the continuation of healthy growth for the newer crop of drugs, pipeline execution and ‘all-important’ profitability improvements remain the key for the firm’s much-awaited re-rating.
