On Thursday, Novartis AG (NYSE:NVS) raised its mid-term sales guidance, increasing its compound annual growth rate (CAGR) target to 6% from 5% for 2023-2028.

The upgrade reflects performance from current growth drivers and anticipated launches, many of which are expected to retain U.S. exclusivity into the 2030s.

The updated forecast, announced ahead of the company's Meet Novartis Management event in London, underscores its confidence in sustained momentum.

Novartis has outlined its projections for 2024-2029, maintaining a 5% CAGR target with 2024 as the base year.

The company remains on track to achieve a core operating income margin of over 40% by 2027, supported by continued sales growth and productivity enhancements.

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The company said the business is gaining strong momentum, with eight marketed brands expected to generate $3 billion to $8 billion at peak sales.

CEO Vas Narasimhan noted increased peak sales estimates for flagship drugs, including Cosentyx, Kisqali, Kesimpta, Pluvicto, and Leqvio, alongside 15 pivotal submission-enabling readouts in the pipeline.

He highlighted the company's long-term strategy, identifying more than 30 promising pipeline assets poised to rejuvenate its portfolio and sustain mid-single-digit growth beyond 2029.

Over the past two years, Novartis has executed more than 30 deals targeting exploratory and preclinical stages. Recent acquisitions, such as Kate Therapeutics and a collaboration with Ratio Therapeutics, bolster its radioligand and gene therapy pipelines, expanding opportunities in neuromuscular and radiotherapeutic advancements.

In October, Novartis reported third-quarter sales of $12.823 billion, up 9% (+10% on constant currency), beating the consensus of $12.76 billion. Volume contributed 12 percentage points to growth.

The company said, "All key growth drivers contributed to the momentum. We achieved important indications expansions for Kisqali in early breast cancer and Fabhalta in IgA nephropathy..."

Novartis has acquired Kate Therapeutics to enhance and strengthen its portfolio of gene therapies.

Kate Therapeutics is a San Diego-based, preclinical-stage biotechnology company focused on developing adeno-associated virus (AAV)-based gene therapies to treat genetically defined neuromuscular diseases.

The transaction value is up to $1.1 billion, comprising an upfront payment and potential additional milestone payments.

Kate Therapeutics' primary programs include preclinical candidates for Duchenne muscular dystrophy, facioscapulohumeral dystrophy, and myotonic dystrophy type 1.

Price Action: NVS stock is up 0.24% at $103.34 at the last check on Thursday.

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