By Andrea Figueras
Novartis lifted its sales growth guidance for the mid-term after what it called a progress in delivering its pure-play strategy.
The Swiss pharmaceutical company upgraded on Tuesday its compound annual growth rate to 5% in the period between 2022 and 2027 and said that it expects a core operating income margin of around 40% by 2027.
The company's focused strategy and financial discipline has delivered robust sales, core operating income and free cash flow growth, it said.
In its 2022 annual report, the company was targetting sales growth of 4% compound annual growth rate over the next five years, and growth above peer median beyond 2027.
"Novartis has now completed its transformation into a 'pure-play' innovative medicines company, delivering robust increases in core margin and free cash flow, while also continuing strong operational performance," Chief Executive Vas Narasimhan said.
As for longer-term targets, Novartis aims to grow in the mid-single digit on the back of the strength of de-risked existing brands and pipeline assets, it said.
Regarding biomedical research and development tasks, the company noted that it has streamlined resources to maximize its focus and enhance competencies.
The portfolio now consists of 103 projects, with up to 15 key submissions that expect regulatory approval in the 2024-27 period, the company said.
Write to Andrea Figueras at firstname.lastname@example.org
(END) Dow Jones Newswires