Novartis AG (NYSE:NVS) stock rose 0.78% (As on October 25, 11:25:07 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 23. Entresto delivers 31% growth on the quarter, reaching $1.5 billion. That growth was driven by performance, both in the U.S. and in ex-U.S. markets. The U.S. growth was driven by 28%, U.S. at 28% constant currency growth, 1.4 million TRx in the quarter. EX-U.S. sales were up 34%. Core operating income was USD 4.4 billion (+17%, +21% cc), mainly driven by higher sales. Core operating income margin was 37.4% of net sales, increasing by 1.4 percentage points (+2.7 percentage points cc). Operating income was USD 1.8 billion (-4%, +13% cc), mainly driven by higher sales and lower restructuring charges, partly offset by higher impairments through discontinuation of early stage development projects. Net income was USD 1.5 billion (+14%, +37% cc), mainly due to higher operating income and lower tax rate driven by non-recurring items. Free cash flow amounted to USD 5.0 billion (+24% USD), compared with USD 4.1 billion in the prior year quarter driven by higher net cash flows from operating activities.

NVS in the third quarter of FY 23 has reported the adjusted earnings per share of $1.74, beating the analysts’ estimates for the adjusted earnings per share of $1.70, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 12 percent to $11.78 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $12.05 billion. This is driven by volume growth of 17 percentage points. Pricing had a negative impact of 1 percentage point and generic competition had a negative impact of 4 percentage points. Further, the growth is driven by continued strong performance from Kesimpta (+124% cc), Entresto (+31% cc), Kisqali (+76% cc), Pluvicto (+217% cc) and Scemblix (+157% cc)

For fiscal 2023, net sales expected to grow high single digit and core operating income expected to grow mid to high teens (from low double digit to mid teens)

Meanwhile, for iptacopan, in October, Ph3 APPLAUSE-IgAN study interim analysis demonstrated clinically meaningful and highly statistically significant proteinuria reduction in patients with IgA nephropathy. Novartis plans to review interim data with regulatory authorities for accelerated approval; study continues with final readout at 24 months. For remibrutinib, Ph3 REMIX-1 and REMIX-2 studies met all primary and secondary endpoints, showing fast, clinically meaningful improvements across urticaria disease activity scores.