Novartis Q2 profit up as generic competition mounts

Novartis is leaning on cancer drugs Kisqali and Scemblix, which grew 44% and 89%, respectively, in the quarter, and its recent string of dealmaking to offset patent expiries. Psoriasis drug Cosentyx stood out by beating expectations with 12% growth.

Investors are increasingly focused beyond quarterly results to high-stakes trial data from three experimental drugs - pelacarsen, remibrutinib and del-desiran - which analysts estimate hold potential for $10 billion in peak annual sales.

Those drugs will shape Novartis' growth beyond 2030, when Cosentyx and Kisqali also lose patent exclusivity. Novartis previously said it expects sales to decline by $4 billion this year due to competition from generics.

Data from the late-stage studies will be key to supporting the Swiss drugmaker's premium valuation of 16 times forward earnings, ahead of peers AstraZeneca AZN.L, Roche ROP.S and GSK GSK.L.