Novartis CEO Vas Narasimhan on Tariffs, China Growth, and Drug Development

Navigating Tariffs and US Production

• 🎯 Novartis is committed to investing $23 billion in US production over 5 years to mitigate potential pharma tariffs.
• 💡 The company aims to have all key medicines produced in the US for the US market within four years, with current inventory ensuring no impact on 2025.
• 📈 Novartis hopes the administration will be pragmatic, acknowledging that strategic US production makes sense regardless of tariffs due to expected 50% global sales from the US.

Cosentix Performance and China Market

• ⚠️ Despite disappointing sales for the psoriasis drug Cosentix in the US and a broader slowdown in China, Novartis expects improvement in China in the second half of the year.
• 💰 The company maintains its peak sales guidance of over $8 billion for Cosentix in 2029, confident in its ability to manage competition.
• 🌍 Both the US and China are critically important markets for Cosentix, with different dynamics: high growth in China and significant existing sales in the US requiring management of competition and new formulations.

Kisqali's Remarkable Uptake

• 🚀 The breast cancer medicine Kisqali has exceeded expectations, becoming a market leader in both metastatic and early breast cancer in the US.
• 📈 Uptake has been strong globally, with significant use in earlier stages of the disease (node zero/one), representing two-thirds of early breast cancer patients.
• ✨ Novartis will reassess Kisqali's peak sales potential, with momentum suggesting it could significantly exceed current projections.

Growth Drivers and M&A Strategy

• 🌟 Novartis has multiple growth drivers, including Kisqali, Semblicks, and Plto, positioning the company for growth through the end of the decade and into the 2030s.
• 💰 With free cash flow approaching $20 billion, Novartis can support a growing dividend, share buybacks, and Mergers & Acquisitions (M&A).
• 🔬 The company remains active in M&A, having led the industry in deal completion over the last 18 months, focusing on its key therapeutic areas (oncology, immunology, cardiovascular, neuroscience) and technology platforms (cell and gene, RNA, radioligand therapies).

Maintaining US Competitiveness in Biotech

• 🎓 Novartis CEO Vas Narasimhan, with strong ties to Harvard, acknowledges the challenging environment for research-based universities.
• ⚠️ He emphasizes the need for the US to maintain competitiveness in biopharmaceuticals and biotech by supporting world-leading universities, the NIH, and breakthrough science, especially as China continues to invest heavily in the sector.