Novartis announced on July 21 that it will maintain its current business development approach despite a significant drop in sales of its cardiovascular drug Entresto. CEO Vas Narasimhan said during a press call presenting the company’s second quarter earnings results that Novartis plans to continue focusing on acquisitions in the “sub-$2 billion range.”
Narasimhan addressed questions about China’s growing role in global biotech innovation and recent increases in deals involving Chinese companies. He said, “Our strategy is to just go wherever the leading science is in a given therapeutic area or in a given technology area.” He added, “We’re kind of geography-agnostic,” emphasizing that strong scientific data is the primary factor for Novartis when considering partnerships or acquisitions.
In January, Novartis agreed to pay $165 million upfront to partner with SciNeuro Pharmaceuticals, which has operations in Shanghai and Maryland, to develop an anti-amyloid therapy for Alzheimer’s disease. The deal could be worth up to $1.5 billion if certain milestones are met. Later, Novartis committed $480 million toward expanding its drug development and manufacturing capabilities in China.
Narasimhan also said larger transactions remain possible if they align with company goals, “If we find an opportunity that’s attractive and fits with our goals, our platforms, our therapeutic areas, we’re always of course open to larger acquisitions.”
The company’s steady approach comes as it faces challenges from generic competition for Entresto following the loss of patent protection in mid-2025. As a result, Entresto sales fell 51% year-on-year to $1.18 billion in the second quarter. Overall Q2 revenue rose by 1% year-on-year to reach $14.4 billion, while operating income declined by 3% at constant currencies.
Key growth drivers for Novartis included Kisqali (breast cancer), which grew 43% year-on-year to nearly $1.7 billion; Kesimpta (multiple sclerosis), which made over $1.4 billion representing 32% growth; Pluvicto (prostate cancer radiopharmaceutical agent), up 43% at $651 million; and Cosentyx (anti-inflammatory biologic), which was the top-performing asset at $1.8 billion.
