Novartis Accelerates Growth with Pluvicto Success and $10 Billion Share Buyback

Novartis, the Swiss pharmaceutical giant, has announced a series of positive developments, including strong performance from its radioligand therapy Pluvicto and a significant share buyback program. The company's second-quarter results have met Wall Street expectations, with sales reaching $14 billion, representing a 12% year-over-year growth.

Pluvicto Gains Momentum in Prostate Cancer Treatment

Pluvicto, Novartis' PSMA-targeted agent for prostate cancer, has shown remarkable growth after two disappointing quarters. In Q2, Pluvicto sales reached $454 million, a 22% increase from the first quarter of 2025. The drug's recent FDA approval for pre-taxane, PSMA-positive metastatic castration-resistant prostate cancer (mCRPC) has contributed significantly to this momentum, with a 40% quarter-on-quarter growth in new patient starts in the U.S.

Novartis CEO Vas Narasimhan highlighted the drug's robust growth, particularly in the community setting, which accounted for 58% of Pluvicto's total scripts in Q2. The company has expanded its treatment center network, with 670 active sites now covering 90% of patients within a 30-mile radius.

Further bolstering Pluvicto's potential, Novartis announced positive results from the phase 3 PSMAddition trial in metastatic hormone-sensitive prostate cancer (mHSPC). The trial met its primary endpoint, demonstrating a statistically significant and clinically meaningful benefit in delaying progression or death when combined with standard of care. Novartis plans to apply for the mHSPC indication later this year, potentially expanding Pluvicto's market reach.

Strategic Initiatives and Financial Performance

Novartis has launched a $10 billion share buyback program, set to be completed by the end of 2027. This move comes as the company experiences accelerated growth from new drug launches and strong performance across its portfolio.

Key highlights from Novartis' financial performance include:

• Kisqali, a breast cancer treatment, doubled its U.S. sales year-over-year, reaching $750 million in Q2. The drug now holds a 61% U.S. new-to-brand share in the early-stage setting within its class.
• Entresto, Novartis' top-selling heart medication, generated $2.4 billion in Q2 sales, a 24% increase from the previous year.
• Cosentyx, despite growing 7% year-over-year, faced challenges in the U.S. market due to Medicare Part D redesign, the 340B federal drug price discount program, and increased competition.

The company also announced a leadership change, with CFO Harry Kirsch set to retire after 22 years with Novartis. Mukul Mehta, currently head of business planning and analysis, digital finance, and tax, will assume the CFO role effective March 16, 2026.

Challenges and Future Outlook

While Novartis celebrates its successes, the company faces potential hurdles. Entresto, its top-selling product, may face generic competition in the U.S. as early as this year, following recent legal setbacks. Once generics enter the market, Novartis anticipates a rapid erosion of Entresto's sales, particularly from the second quarter of a competitor's launch.

Despite these challenges, Novartis remains optimistic about its future. The company maintains its peak sales projection for Pluvicto at over $5 billion and expects Cosentyx to achieve $8 billion-plus in peak sales with mid-single-digit-plus growth in the coming years.

As Novartis continues to navigate the competitive pharmaceutical landscape, its focus on innovative therapies and strategic financial management positions the company for continued growth and market leadership.